Warc Blog

China online video ad revenues grow

31 July 2014
SHANGHAI: Online video advertising revenues in China recorded 45.9% growth in Q2 2014 on the previous quarter as well as year-on-year growth of 64.5%, according to new analysis.

The latest data from iResearch Consulting Group, the Chinese market research firm, also showed that overall revenues for the Chinese online video industry increased 38.9% in Q2 2014 – and almost three-quarters (73.6%) year-on-year – taking the total to 5.43bn Yuan (roughly US$880m).

Over two-thirds (71.5%) of this quarterly revenue came from advertising, which was worth 3.88bn Yuan, while 16.3% came from services, such as terminal sales and games. The recent FIFA World Cup made a sizeable contribution, the report said.

Mobile online video ad revenues also recorded strong growth, accounting for 830m Yuan, a rise of 53.2% compared with 540m Yuan in the first quarter of the year.

And mobile online video ads accounted for a fifth (21.3%) of total online video ad revenues, a slight increase on 20.3% in Q1 2014.

Looking ahead, iResearch said that mobile video will have considerable future potential for advertisers and video operators.

"Online video enterprises should further explore the huge potential of mobile video to monetise the mobile traffic," the report said. "Surging mobile online video viewers laid a solid foundation for the comprehensive mobile commercialisation of online video enterprises."

Online video app usage also continued to grow, reaching 240m in May 2014, almost double (95.5%) the number recorded in May last year.

It comes as a separate study from UK-based Digital TV Research forecast that online TV and video revenues in Asia-Pacific – again driven by advertising – will grow to $10.19bn in 2020, up from just $0.54bn in 2010 and $2.68bn in 2013.

Advertising expenditure will reach $4.61bn in 2020, the report said, with China ($1.96bn) and Japan ($1.2bn) accounting for two-thirds of the region's total.

Warc's Consensus Ad Forecast, released this week, found all-media advertising expenditure in China is forecast to rise 11.1% in 2014, with internet adspend also expected to rise this year, by 30%.


Data sourced from iResearch, Digital TV Research; additional content by Warc

 
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