Cheetah Mobile has responded to a report that Facebook had sent emails to multiple Chinese advertising agents requesting that they (at least temporarily) stop showing ads for all Chinese utility apps on its social platform.
Cheetah Mobile is a leading mobile internet company which markets apps for mobile users worldwide. Facebook asked its advertising agents to stop showing ads for the apps, including those offering memory cleaning and battery management services.
Though the company said it promotes its products through multiple channels and that no single channel — including Facebook — accounts for more than 10 percent of its external promotional volume. Nonetheless, Cheetah Mobile (CMCM) stock tumbled 7.6 percent after news of the Facebook ban surfaced in the media.
Citing “numerous misconceptions reported regarding how Cheetah Mobile acquires its overseas users and its monetization practices,” the company noted that the action “only means a temporary halt to the acquisition of users by Chinese utility apps, but it does not affect the ability of utility apps to monetize through Facebook.”
“Cheetah Mobile is a top traffic contributor to Facebook and an important strategic partner of Facebook’s mobile advertising platform,” the company said this week. “We have a very positive cooperative relationship with the Facebook team, and we will continue to work together to jointly expand the mobile advertising market.”
The issue likely involves malicious marketing.
“We are pleased to see Facebook take this action,” the company said. “Cheetah Mobile, as China’s leading mobile internet company overseas, is committed to fighting malicious promotional activities and deceptive advertising together with Facebook and other Chinese internet companies.”
MAW will update with news as the story develops.