Online Games Saving Online Video Sites

China Business Post, 12/13/07

Unlike many traditional sectors, online gaming firms are showing no qualms about spending on online video advertising. Youku manager Wei Ming revealed that online gaming adverts account for 50% of the company's income. Xunlei CEO Sean Zou also revealed that online gaming adverts are Xunlei's largest source of income. Ku6 VP Ceng Xingye said that although online gaming adverts did not account for such as large percentage of income for Ku6 when compared with Youku and Xunlei, online gaming firms are the company's second largest client group, with the number of adverts second only to IT and digital products.

According to Ceng, online gaming firms are opting to advertise on these sites as they have very similar user groups. Online video site users tend to be young and have a demand for online entertainment - making them target customers for online gaming firms. Wei Ming also gave another reason - advertising on video sites is cheaper than on other sites.

Keywords: online gaming online video Youku Wei Ming online advertising Xunlei Sean Zou Ku6 Ceng Xingye marketing strategy Internet

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