Implications of AI on Tencent's business. Targeted advertising should benefit from superior customer profiling, based on a plethora of customer social data. According to Tencent, adverrtisers can get access to location, basic demographics, interests, recent activities and purchasing power information of users, all of which together allows localized and precise marketing. The greater the relevancy of customer advertising, the higher the click-through ratio and the greater the volumes without compromising the user experience*).
*) Goldman Sachs, China's Rise in Artificial Intelligence, August 31st, 2017