Weibo revenue surges as China tech groups lift advertising – Nikkei Asian Review
What happened: Chinese microblogging platform Weibo has reported a 68% year-on-year increase in net revenue to reach $426.6 million, driven mostly by ad sales. The company, which has 431 million users, has attracted companies like Alibaba Holdings which have spent millions on their Weibo-focussed digital marketing campaigns. As a result, Weibo’s ad revenue made up 87% of its total for the quarter.
Why it’s important: Weibo has, at times, had trouble holding onto its users. The rise of competing social platforms has played a significant role in this. In 2014, Weibo saw its users drop from 331 million to 275 million. However, it managed to pull through and recently added 20 million users in the second quarter. Advertisers clearly have confidence in the company’s ability to provide an audience for their ads. Alibaba has dedicated an annual RMB 700 million to its digital marketing campaign on Weibo, according to the latter’s Vice President, Cao Fei.