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Rumor: Shanda to Launch Online Ad Platform

Chinabyte, 3/29/11

According to one source within Shanda Interactive (Nasdaq: SNDA), the Chinese online media provider and online game operator is preparing to launch its own "AA Advertising Platform."

Reportedly, Shanda Advertising is an ad publishing and management platform targeting small and medium-sized advertisers. The platform allows advertisers to control ad production, placement, price bidding, targeted publication and display formats. Advertisers will be able to specify the number and arrangement of ads; once materials are submitted, the system will automatically generate a finalized ad. Advertisers using the platform will also have control over the length of time ads are displayed as well as the specific channel or client application (such as Shanda subsidiaries Ku6 (Nasdaq: KUTV), Shanda Literature or Mochi Media mini-games) for publication. The platform supports online payment and provides custom ad statistics along with tools for data analysis, allowing advertisers to track campaign efficiency, bidding and delivery channel optimization.

According to the source, it is estimated that once the platform becomes commercialized, ads, through a variety of means, will reach a billion users each month, and bring a monthly total of up to 19 bln pageviews.

Reportedly, Shanda Interactive CEO Chen Tianqiao has poached advertising industry experts from a number of Internet companies, including Google, Yahoo, Microsoft and Baidu (Nasdaq: BIDU), and is now running advertising operations and R&D between the Shanda Innovation Institute and the company's online game payment and service platform Shanda Online. It remains unknown when "Shanda Advertising" will see a formal launch.

Keywords: Shanda Chen Tianqiao Internet SNDA online advertising

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