Companies in China are cutting back on digital-ad spending as the economy slows and recurring Covid-19 outbreaks weigh on consumption
Some firms suggest it could be a while before a recovery takes hold as Covid containment measures continue
China’s Tencent is backing the developers of blockbuster videogames such as “Pokémon Unite” and “League of Legends.” But Beijing’s crackdown on the industry at home, including when minors can play online games, could affect the company’s global videogame empire. Photo composite: Sharon Shi, another sign of waning business confidence in the world’s most populous nation.
Chinese internet giants that operate several of the country’s biggest online-advertising platforms recently warned of weak ad spending by their customers in the second quarter. Some also suggested it could be a while before a recovery takes hold, signaling pessimism about the broader economic outlook.
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