Analysis International just released data that shows Youku, Tudou and Sohu share the top 3 positions for the online video advertising market for the second quarter of 2011.
Youku has the strongest lead with 23.4% advertising revenue market share, Tudou has 14% and Sohu has 13%. Over the previous quarter, Youku gained 1%, Tudou dropped from feeling the rising pressure from Sohu. Positions have remained unchanged. This explains Youku being able to pull further away from Tudou in terms of revenue.
Of the tier 2 online video sites, Xunlei has the 4th largest user based and has strong adverting sales revenue. Qiyi is also aggressively growing its content and sales. However Ku6 has recently replaced their CEO, downsized their sales team and shifted strategy. Such big changes have taken them out of any leadership contention.
Since operating an online video site requires huge amounts of capital, unlisted companies can either raise money or stay alive by acquiring popular quality content to attract more viewers to sell more ads.
Congratulations for their outstanding achievement in the video add market. Hope this will continue in future also.
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Marketers seeking to reach the teen to young adult
demographic in China should seriously consider incorporating online video on
websites like Youku, Sina, Tudou and iQIYI. Online video is gaining popularity
at a rapid pace, and will only continue to grow in importance for marketers in
the years to come. According to iResearch’s latest data online video market
size will grow from 6.27 billion yuan in 2011 to as much as 22.5 billion yuan
by 2014 – this same figure increased by nearly 100% YOY from 2010 to 2011. This
will certainly be an area to watch.