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Riku Tanaka
January 18 09:33

Video sites are now more appealing than news websites for online marketing in China

The sudden advance in China's short-video industry has all the earmarks of being highly profitable, with video sites attracting more internet ad revenue than news sites in 2019.
The spike in ad revenue on video-hosting platforms is correlated with the growth of the platforms user base. Douyin, the Chinese variant of TikTok, a worldwide viral video app, boast a 60% year-on-year growth in average active daily user (400 million in January of 2020), while the second-biggest player in the industry Kuaishou set a target of 300 million users in February, up from 200 million in 2019.
According to data from a report by Zhongguancun-based Interactive Marketing Laboratory, video-hosting platforms placed third in terms of gross ad revenue in 2019, taking up 12.5 percent of the market following online shopping sites (35.9 percent) and search engines (14.9 percent). News publication platforms, which took third place in the same ranking last year, dropped to fourth place with nearly 12 percent of internet ad revenue market.
Out of the four aforementioned platforms, only search engines experienced a drop in market share. In 2018, search engines represented 21% of the market.
Alibaba, Bytedance, Baidu, Tencent, and stood out as far as securing advertising deals.
Online ad revenue on video sites rose 43% year-on-year, which is much larger than the 18% overall growth across all platforms, based on data from the IML report. The report notes that the total growth is lower than last year’s figure of 24% due to China’s economic slowdown.