Potential ad sales revenue huge for Tencent

Social media giant Tencent Holdings Ltd is sitting on an advertising gold mine by monetizing its blockbuster WeChat app.

The messaging software, through which more than 1 billion users consume games, watch videos, make payments and conduct an array of real-life transactions, generated 40.4 billion yuan ($6.4 billion) last year thanks to paid ads, a stellar 49 percent rise from a year earlier.

Still, just 17 percent of its total revenue in 2017 came from advertising, compared with Facebook's roughly 98 percent, leaving huge potential for growth, experts said.