Core Insights - Tencent's advertising revenue grew by 20%, marking the 11th consecutive quarter of double-digit growth, with a gross profit increase of 24%, indicating effective cost control in the advertising business [1] - The integration of AI has significantly enhanced advertising performance, with AI-driven ad click-through rates improving by 15%-22% [2] Advertising Performance - The video account advertising revenue saw a robust growth of over 50% year-on-year, driven by increased traffic and transaction density, indicating ongoing growth potential for the video account platform [4] - The share of video account advertising in total revenue has reached 35%, with expectations that this could exceed 70% in the future [3][4] - Mini-programs experienced an 18% growth in GMV, with total revenue increasing by 20%, and related advertising revenue growing by 50% [5] Search Advertising - WeChat search advertising revenue increased by approximately 60%, attributed to growing interest from consumers and advertisers in mini-program search results [6][5] Key Factors for Advertising Growth - Key elements driving advertising business growth include improved click-through rates due to AI, sustained traffic growth from video accounts and WeChat search, increased revenue per click from AI-generated ad content, and a low ad load percentage compared to competitors [6][9] - The potential for ad load improvement in video accounts is significant, with a current ad load in the low single digits compared to 10%-15% in competitors [9] Economic Context - The overall advertising market is influenced by the economic environment, with management noting a recent improvement in the decline of average transaction amounts [11] - Despite some external factors affecting advertising budgets, Tencent's overall advertising revenue still achieved a 20% year-on-year growth [11] Future Growth Opportunities - Future growth in advertising may come from deeper integration of AI into advertising strategies, with management exploring monetization through advertising support rather than direct user charges [13][12]