Video website earns 900 million yuan from World Cup Tencent becomes the biggest winner

After the fierce showdown between West and Netherlands, the more than month-long World Cup in South Africa came to an end. China video websites that participated in World Cup coverage for the first time all danced to the rhythm of the World Cup. How many business opportunities can a World Cup bring to video websites? According to surveys by relevant agencies, from June to July, the advertising revenue of major video websites has reached 900 million yuan.

Beyond traditional media, new media is the biggest winner

FIFA President Blatter once estimated that on FIFA's bills, the football cake of this World Cup earned more than US$7 billion in revenue, of which the bills of China companies increased significantly. In addition to China's privately owned Yingli Green Energy Holdings Co., Ltd., which advertises on the back of the World Cup venues, and the vuzela produced in Jiangsu and Zhejiang regions, CCTV's US$100 million purchase of broadcasting rights has also allowed more China businesses to pay and work.

According to statistics from relevant research institutions, due to the impact of the World Cup in the first half of the year, the video advertising revenue of major video websites in the first half of the year was about 1.5 billion yuan. From June to July, the advertising revenue of major video websites reached 900 million yuan. Among them, Tencent's 800 million clicks became the biggest winner among video websites, Ku6's 600 million clicks took second place, and Tudou ranked third with 300 million clicks. According to the patch advertising price of 150 yuan to 180 yuan/1,000 people, the revenue from patch advertising on video websites during the World Cup was more than 250 million yuan, and this did not include the revenue from other businesses of video websites.

In addition, the recently released "2010 World Cup Hotspot Marketing Research Report" survey data shows that 64.3% of netizens prefer online media to learn about World Cup related information, which is much higher than the 21.4% of netizens who prefer TV. The Internet has become the first choice media for netizens to learn about the World Cup. Survey data also shows that among online media, comprehensive portals have become the preferred way for netizens to learn about the World Cup, accounting for 68.9%. Next was video websites, accounting for 57.3%. The two major online media have become the mainstream media for netizens to pay attention to the World Cup choices.

Although this World Cup is the first time that video websites have participated in World Cup coverage, for them, they have undoubtedly succeeded in making back a lot of money for themselves. rdquo; Wang Tao, a researcher at the Institute of New Media, said that taking Tencent. com as an example, during the World Cup, it received a total of 46 advertisers, ranking first in the industry. Among them, more than 20 companies invested in large-scale title launches, with launch levels ranging from tens of millions to millions. The number of advertisers on other video websites is around 10. Such a large number of advertisers paying for video websites fully proves the indispensable position of video websites in the media.

Interaction + Marketing

Video websites are favored by advertisers

Video websites have made a lot of money relying on the World Cup. However, in this money-gathering battle, why do advertisers place advertisements on video websites? Wang Wen, a marketer at an advertising company, told reporters that the diversified reporting methods of video websites were the main reason for winning the World Cup. Whether it is Youku's self-made big talk World Cup or Tencent's IM(instant messaging tool)+ front reporting, diversity and interactivity are the main characteristics of video website World Cup reporting. This feature can increase audience stickiness and improve the commercial value of the website. rdquo; In Wang Tao's view, it is precisely because of the Internet's rich product line and powerful communication platform that it has won the favor of heavyweight advertisers.

Let's take a look at how Ku6.com, the runner-up video website of this World Cup, markets the World Cup.

High bonuses, exciting schedules, easy registration methods, and real-time online live broadcasts constitute Cool 6's World Cup reality show "Crazy Fans 24 Hours".

This program, which draws on the style of foreign "Truth or Dare", sent 16 strangers to a closed villa in the suburbs of Beijing, allowing them to spend 32 boring days together. During this period, fans cannot surf the Internet, make phone calls, or read books. All they can do is watch the World Cup or play various games. At the same time, Cool 6's TV monitor broadcasts the lives of the players 24 hours a day, and the attention generated by netizens 'votes will determine whether the players will stay or stay. In the end, the only winner will receive a reward of 100,000 yuan.

In order to produce this program, Ku6 invested a production team of more than 20 people, 30 website editors, 15 local director groups, and 5 content coordination groups. It also frequently poached people from Hunan Satellite TV and Enlight Media. Ten days before the start of the World Cup, the average daily number of unique users of the website reached 35 million, with a peak of 43.5 million.

Competition for creativity is determined in part by the weak position of the video industry. In terms of influence, video websites are not as stable as TV media; in terms of point-to-point accuracy, videos are not as stable as mobile phones; in terms of browsing habits, videos are still not as stable as portals. These factors make it difficult for users to form loyalty to video websites and brand columns in terms of usage habits, increasing the uncertainty of advertising coverage. ldquo; In this context, video websites must come up with some creative solutions. rdquo; Chen Feng, editor-in-chief of Ku6.com, said.

There is no doubt that the successful "24 Hours for Crazy Fans" has brought considerable economic benefits to Ku6. Excluding the advertising revenue from the front and back patches in the "24 Hours Crazy Fans" video, the daily necessities used by the players during the event are also product placement marketing by advertisers.

If future video websites want to continue to make profits, in addition to selling patch advertisements, they must also develop display advertisements for traditional portal websites and be able to sell projects. After all, patch advertising is not novel enough, and a large part of advertisers 'needs cannot be met. This World Cup reality show is Cool 6's first attempt in project management. rdquo; Chen Feng said that for Cool 6, tailor-made a variety show or a reality show for advertisers has become an increase in Cool 6, and the revenue from this project is much higher than that of traditional Patch advertising.

content innovation

Is the key to future profits

Relying on the influence of the World Cup, major websites such as Ku6, Youku, and Tudou are expected to achieve profits in 2010. However, can the four-year World Cup ensure that these video websites can survive for four years? The answer is obviously impossible, so how should future video websites ensure profitability?

Wang Tao believes that after video websites have gone through legalization and World Cup model discussions, the industry has become cleaner and video websites have ideas. These websites will truly enter the era of judging heroes based on how much money they rob.

After the online video industry has been honed by its initial development in the first five years, in the second five years, various video websites will focus on content creativity. Under the pattern of a hundred schools of thought contend, the battle for differentiated content competition has already sounded. rdquo; Wang Tao said that in the future, it will be impossible for video websites to charge users, and it will still be advertisers who pay for them. At present, the total advertising volume on video websites is only 1% of CCTV's advertising share. Judging from the situation in the past two years, the advertising volume on video websites has not changed much, but advertisers have new requirements for video websites. When the number of users, advertising forms, etc. tend to be consistent, creative ability will determine the life and death of a video website. And implant advertising will be another big profit point in the future after patch advertising.

According to the reporter, in the later stages of the World Cup, Youku, Tudou and other websites will launch their self-portrait online dramas. The third season of "Hip Hop Quartet" invested and filmed by Youku has recently been launched. After holding hands with Youku in the first season, Master Kong Green Tea will continue to advertise in the third season of "Hip Hop Quartet" through product placement.

According to staff related to Master Kong's green tea, summer is the peak season for beverages every year, and various manufacturers have used their best skills to launch a sales campaign. How to stand out in the fierce marketing requires innovative ways to communicate with consumers, maintain brand popularity and loyalty, and lay a good foundation for annual gains. This season, Master Kong sublimated the advertising appeal point and proposed the concept of happiness marketing. He hoped that through the Youku online drama "Hip Hop Quartet", green tea can bring happiness to consumers to summarize the product's functions and brand characteristics. Youku CEO Gu Yongqiang also said that Youku's profit model this year will be placed in product placement advertising. ldquo; In product placement marketing, product placement advertising clips often flash past during TV broadcasts, while online video can intercept product placement clips and use online packaging to amplify their communication effect." rdquo; Gu Yongqiang said.