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China’s YouTube Adds Ads

Written on: Jul 16, 2007
Author: Sarah Novotny |
: Share; China’s YouTube Adds Ads

Today, Tudou.com, China’s own version of YouTube, announced the launch of an advertising platform that will enable advertisers to incorporate brand advertising into Tudou videos.

The site has also received $19 million in venture capital funding from Capital Today and General Catalyst Partners along with new and existing investors such as IDG China, Granite Global, JAFCO Asia, KTB Ventures and JAIC. Besides the expansion of the technical infrastructure, the funding will allow for expansion with advertising partnership with existing clients including Adidas, Ford, Lenovo, KFC, Nike, Pepsi, Motorola, Samsung, and Sony.

Despite several competitors both locally and internationally, Tudou has steadily grown and kept its leadership position in the Chinese market. According to AC Nielsen, 40 million Chinese Internet users are currently watching more than 1.2 billion videos each month off of the Tudou platform and according to iResearch, Tudou now accounts for over half of all valid visiting of online video sharing in China. The site’ users also top the amount of time per visit spent, over any other major video site at 40 minutes a session.

This audience is perfect for the site and its investors to effectively capitalize on.

The platform Tudou is offering allows advertisers to incorporate their message into video via a single turn-key solution. Also, advertisers can create content with a high emotional impact due to their product placement, so to speak, and only target consumers that meet their specific location and behavioral requirements.

Gary Wang, founder and CEO of the company stated, “As our audience in China continues to grow and spend more time on Tudou, there will be tremendous potential for advertisers to increase brand awareness with a large, absorbed Chinese audience. We are excited to work with our investment partners to create value for our audience, advertisers and content partners.”

Another unique feature of the company itself is the partnerships with traditional Chinese media outlets. Those companies are tapping into the user generated content for television broadcast, which is opposite of the partnerships with US video sites.

The projected revenue is astronomical and should the site continue to grow at the rate it currently is, there will be a very fast return for these investors. Kathy Xu, of Capital Today said, “Tudou is a new life style where we see millions of people spend hours and hours to watch their own shows. It is a cool place where new stars will be born, and new media where eyeballs will eventually turn into advertising dollars.”

Reader Comments.

the todou business plan is based on copyright infringement, more so than Youtube, you can through surfthechanne.com and alluc.org watch nearly every american tv channel on todou. was also wondering why it is impossible to access the web site directly through the url, or via google.

Posted by sanimoyo | 9:57 am on September 22, 2008.

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