Online video ad revenues tripled from Q1 2011 to Q1 2012
In May 2012, eMarketer reported on an R3 and Admaster Digital Consulting survey that found that 82% of marketers in China increased their digital marketing budgets in 2011, and another 81% expected to increase digital ad spending in 2012. Further, 23% of marketers surveyed expected digital video to take the largest share of increased spending in 2012. Now, findings show that the marketers surveyed weren’t all talk.
In June 2012, Analysys International, a local research firm in China, reported that online video ad revenues more than tripled from RMB660 million ($102.2 million) in Q1 2011 to RMB2.1 billion ($325 million) in Q1 2012.
According to Analysys International, cumulative online video spending in 2011 was RMB4.83 billion ($747.7 million). As the market matures and consolidates, including the merging of the two largest video platforms Youku and Tudou, online video ad revenue will be hard pressed to maintain such considerable growth for the entire year.
eMarketer expects online ad spending in China to reach $7.4 billion in 2012, an increase of 39% over 2011. Online video, which is starting from a smaller base, will grow faster, but it will still be dwarfed by search and display ad spending in the country.
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