Momo, the Chinese social app that announced 150 million registered users recently, is testing an advertising system for local merchants that is named Daodiantong (It means express for stores).

Local businesses will be able to place targeted ads based on locations. The Momo system, according to the company, is able to calculate how many users an ad covers in a certain area and a certain period of time. The pricing is based on the user coverage.

The Dashboard of Momo Ad System

The Dashboard of Momo Ad System

The whole process of placing ads can be done through the Momo app for merchants. It’s now only available on Android.

Apart from ad impressions, merchants will also be able to interact with customers through the Momo app as each merchant will have a Momo account and profile. If merchants’ phone numbers are on the profile, users can put through calls with one click.

As Momo started as a location-based social app, enabling users to find and chat with users nearby, it’s a natural step for it to create location-based features for business. The company seems to have been actively working on monetization, which began about one year ago with stickers and premium subscription. Mobile gaming was added later in 2013, thanks to which the company would see quick money. Momo announced it had broken even in November 2013.

 

Image credit: ChinaZ.com