Facebook blocks China app ads, what about its good brother Cheetah?


In a letter of e-mail to an advertising agency, Facebook said it would "suspend all tool-based app ads in China," according to the Beijing Business Daily.

Facebook says that since recent times, there have been more violations by advertisers of tool-based apps in China, mainly by tricking users into inducing downloads, such as telling users that their phones are full.

So Facebook decided to suspend all Chinese tool-based app advertisers, with clean-up classes and battery categories the focus. In the email, Facebook explicitly asked the agency to "actively suspend all ads for clean-up and battery-type apps, including internal and external."

Facebook has banned Chinese app ads, forcing cheetah stouss. Cheetah is one of Facebook's global mobile advertising partners and a Facebook traffic provider.

The way the two work together is for Cheetahs to run ads on Facebook to get users and downloads. The second is that Cheetahs are connected to Facebook's mobile advertising platform, where Advertisers can run ads on Cheetah's tool products.

This time, Facebook's most immediate impact on cheetahs from blocking Chinese app ads is to choke the cheetah's access to users, which is no doubt compounded by the decline in live users in Cheetah Month.

Cheetah Mobile's user growth slowed or even declined slightly in 2016. Cheetah reported 651 million monthly active users in Q1 in 2016, compared with 612 million live cheetahs in Q3 q3 2016.

Without Facebook's access channel, Cheetah's pick-up costs could rise, which could lead to a contraction in Cheetah's profit margins and a further slowdown in user growth.

Cheetah is a model for Chinese tool app companies to go out to sea, with revenue s $1.13 billion in Q3 Q3, including 898 million yuan from mobile advertising and about 700 million yuan from overseas advertising.

However, the more internationalcheetahs are more "dependent" on Facebook, with Credit Suisse estimating in early 2016 that advertising revenue from Facebook accounts for 25 to 30 percent of Cheetah advertising revenue.

Facebook's advertising system has previously adjusted to more third-party advertising platforms, such as MoPub and Fyber, meaning Cheetahs face more competitors, a change that led to a drop in revenue for Cheetah's Q1 quarter 2016 and a downward revision in revenue outlook for 2016.

Cheetah has more than 600 million users but at this stage the ability to cash out or rely on a third party, this clean-up master, battery doctor and other tools app briefly frustrated to see if the Cheetah's two products on the content Live.me and News Republic can make up for the corresponding losses.