Warc, 29 January 2013
BEIJING: Online video revenues increased by almost 50% in
China last year, and are expected to enjoy further growth as brands like Pepsi
and Nescafé embrace the channel.
According to iResearch, the insights group, the online video
category generated RMB9.3bn in 2012, versus RMB6.3bn in 2011 and RMB3.1bn in
2010. This total is forecast to hit RMB33.2bn in 2016.
The share of sector spending contributed by advertising came
in at 72.6% last year, higher than the 67.8% recorded during 2011.
Copyright revenues accrued a 12.8% share of revenues in
2012, with value-added services on a modest 2.9%, having both lost share since
2011.
Advertising, by contrast, saw "substantial"
increases in client numbers and unit prices, driven by high-profile events,
rising consumer uptake and improved strategies from website owners.
The merger of Youku and Tudou, two such firms, has also
created a parent company with sites attracting a combined 450m visitors,
therefore underpinning these trends across the entire industry.
In a demonstration of these processes in action, Pepsi, the
soft drinks brand, partnered with Tudou and Youku on a 30-minute film,
premiered on their websites, called "Bring Love Home".
It released a related music video starring several
celebrities, which, along with the film itself, received 71m views and 92,000
comments during its first day or so online.
"The Pepsi campaign is a perfect example of the kind of
branding communications that we excel at," said Dong Yawei, senior vice
president of Youku Tudou. "We understand the Chinese audience and
consistently deliver content that strikes a chord."
Nescafé, the coffee range owned by Nestlé, has also allied
with Youku to launch several "micro-movies", themed around different
coffee flavours and starring writers, directors and travel bloggers.
"There is a paradigm shift in the way that consumers
think," said Adrian Ho, Marketing Director, Nescafé China. "Consumers
now want to hear inspirational stories of real life heroes whom they can look
up to."
GM, the automaker, and Yili, the dairy specialist, are among
the other companies that have run successful online video campaigns accruing
over 100m views and 100,000 comments in China.
Data sourced from iResearch; additional content by Warc
staff
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