The9 Launches New AI Mobile Advertising Venture with JiTuo to Drive Game Marketing Efficiency

The9 Ventures into AI Mobile Advertising

In an exciting development for the digital marketing and gaming industry, The9 Limited, a prominent Internet company listed on Nasdaq, has announced a new joint venture through its subsidiary, Shanghai The9 Information Technology Co., Ltd. This venture, formed with Shenzhen JiTuo Interactive Technology Co., Ltd., specializes in AI algorithms for mobile advertising. The agreement marks a significant step for The9 as it leverages advanced technology to enhance its marketing capabilities for upcoming gaming releases.

Partnership Overview

Under the terms of the agreement, The9 will hold a 51% stake in the venture, while JiTuo maintains a 49% stake. This strategic partnership combines The9’s considerable experience in online gaming with JiTuo’s expertise in AI-driven marketing solutions, which is expected to optimize advertising for new games, including the anticipated title MIR M.

JiTuo brings significant experience as it collaborates with notable firms like AppLovin Corporation and serves as an agency partner for Apple Search Ads in China. This collaboration is expected to harness JiTuo’s AI model and data algorithm system to refine advertising strategies, thereby enhancing conversion rates and improving the efficacy of marketing efforts in the competitive gaming landscape.

Projected Financial Gains

The agreement outlines ambitious financial expectations, with JiTuo committing to an annual profit of over RMB 20 million (approximately USD 2.8 million) for 2025. Notably, profit is projected to increase by at least 50% annually over the following two years. As part of the agreement, The9 will distribute the profits quarterly among the joint venture partners based on their shareholdings, reflecting a strong commitment to financial transparency and shared success.

Moreover, The9 has granted JiTuo a significant number of restricted shares, equivalent to around 93,700 ADSs, contingent on achieving profit targets outlined for 2025. This mechanism encourages JiTuo to drive performance while aligning their interests closely with those of The9.

Statements from Leadership

George Lai, CFO and Executive Director of The9, expressed enthusiasm about this venture, highlighting that it builds on successful previous partnerships. "With the newly formed joint venture with JiTuo, we aim to harness their advanced algorithms and data insights, which will not only help promote our new titles effectively but also significantly boost The9's financial outcomes in this new business line."

JiTuo’s CEO, Guo Yang, also shared insights about their technological prowess. He emphasized how their machine learning algorithms can optimize traffic acquisition through targeted advertising campaigns. This innovation positions the joint venture to capitalize on extensive data analysis to enhance user engagement and conversion rates across various app stores.

Future Directions

The collaboration signifies a growing trend in the intersection of AI and digital advertising, particularly in the gaming sector. By combining resources and expertise, both companies are well-positioned to navigate the dynamic landscape of mobile marketing. The focus on advancing gaming marketing strategies is critical as competition intensifies and user expectations evolve.

As The9 prepares to launch new titles, including MIR M, this joint venture will play a crucial role in shaping their marketing narrative. By deploying AI-assisted solutions, The9 aspires not only to meet but exceed the expectations of gamers and stakeholders alike.

Conclusion

In conclusion, The9 Limited's partnership with JiTuo paves the way for an innovative approach to mobile advertising in the gaming sector. The integration of AI technology promises improved marketing outcomes while setting the stage for substantial financial growth in the years to come. With their eyes set firmly on the future, both companies are determined to redefine standards in digital marketing within the gaming landscape.

This venture is yet another testament to The9's commitment to innovation and excellence in a rapidly evolving digital environment.