Revenue of China’s online video industry was 96.27 bn Yuan in 2018 with a year-on-year growth of 32.6%.In 2017, the revenue of online video industry has attained 72.59 billion Yuan. With the rising of users and user stickiness, commercial resources brought by online video become more valuable and the revenue of online video industry was estimated to top 100 billion Yuan in 2018. The growth rate of online video market, meanwhile, declined due to the influence from core companies, and it was expected to return to over 30% in 2018.
Online video platforms are actively improving its speech power in contents. Many of them take top copyright content and high-quality self-made content as core of future development strategy. In the future, online video platforms will offer more high-quality content which has richer varieties and better meets users’ demands so as to attract more users.
In 2018, user payment in online video industry accounted for 31.2% in the total revenue of online video market with a growth higher than the expectation made in the previous year. Currently, online video industry made great efforts to develop paid contents in order to enrich the business mode. Therefore, user payment is expected to seize roughly 30% of the share. Advertising, another key revenue source of online video industry, accounted for 47.1% of the total revenue of online video industry. Online video industry shifts from commercial modes heavily rely on online advertisements to more balanced and diversified revenue modes.
In 2017, China’s online video advertising revenue reached 36.05 billion Yuan with the year-on-year growth of only 10.5%. The moderate growth can be attributed to the drastic fluctuation of top companies. Leading online video platforms can not only offer massive effective exposure but also make targeted promotion to users based on their large viewer base and analysis of audience’s video watching data. Thus, the video platforms can attract different categories of advertisers.
Video companies are actively exploring advertising forms other than in-stream video ads as well, such as out-stream video ads planted in deep contents based on ads placement and sponsorship in self-made content videos. Meanwhile, they are also trying other advertising forms like news feed ads and video bumpers. This provided advertisers with new advertising ideas and possibilities. It is forecasted that online video advertising market will keep its vitality in the long run and further expand its share in general online adverting market in the future.