2 Reasons Tencent's Advertising Business Is Booming

China's online advertising market has either been a minefield or a goldmine over the past year, depending on which companies you've invested in.

For Baidu (NASDAQ: BIDU), which owns China's top search engine, it was clearly a minefield. Baidu's advertising revenue dropped year-over-year for six straight quarters; it broadly attributed its woes to China's economic slowdown, the ongoing trade war, the pandemic, and intense competition.

But for Tencent (OTC: TCEHY), which owns China's top mobile messaging platform WeChat, it was a goldmine. Tencent's ad revenue rose 16% year over year in the third quarter, accelerating from its 13% growth in the previous quarter and leaving legacy players like Baidu in the dust.

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Source Fool.com