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Chinese Online Video Ad Revenue Up 218% YoY

Following a tumultuous 2011,the online video market in China surged to rapid growth in 2012, rising 24.7% quarter on quarter to a whopping 2.1 billion Yuan. Research shows that the growth of ads revenue decelerated due to seasonal factors such as the Chinese New Year. However, compared to Q1 2011, ad revenue grew remarkably this year following the Spring Festival.

Video websites expanded their revenue streams by introducing their videos via smart phones and gaming portals. Youku, for example, recently received a permit to introduce video services on mobile, and it has run a series of shows targeting mainstream Chinese, such as a talent contest to find China’s next generation of entertainment stars. However, with newer players entering the space, online video providers will have to more aggressively focus on user needs to drive other revenue streams up.