Online Video Changes Viewing Behavior, Enhances Marketing Advantage

20 December, 2011

SHANGHAI —, China’s leading online video site, GroupM China, China’s number one media investment management group and Sinomonitor, nationally recognized research agency jointly released a research report Online Video Audience & Media Value. The report shows the inevitable linkage between TV and online video as well the differences in audience viewing behavior.

The three-month research project covered 20 cities, and provides a comprehensive overview of the new medium.

Tony Chen, President, GroupM Interaction, said, “The study reveals that online video creates more and different viewing peaks than TV throughout the day, providing opportunities for advertisers to build closer relations with consumers through interactive content.”

“Research shows that audience behavior has changed, which will lead to changes in communications and marketing. TV and video sites are similar in nature and contain the same content and advertisement, which sets the foundation for interaction between these two media,” commented Wei Ming, Vice President, Youku.

Clark Xiao, Vice President, Sinomonitor said, “Online video is growing rapidly in China, with online video viewers in first-tier cities already spending more time on video than on TV, a trend that is spreading to tier 2 and tier 3 cities. Advertisers are no longer debating whether to invest in video, but rather how to invest to achieve optimal ROI.”

Key report findings:

1. Video sites change viewing behavior, information dissemination adopts new channels
Time spent on TV drops as online video viewing increases, particularly for those born after-1980, where TV viewing time has dropped 63.3% and viewing frequency 56.4% after using online video sites. The longer users adopt video sites, the greater the effect. is the most commonly visited site with 77.6% logging on frequently and 54.2% most frequently logging onto Youku.

The research also found that online video is gaining reach nationwide, with reach in tier-2 and 3 cities already at tier-1 2009 levels and growing more rapidly than in first-tier cities.

2. Online Video VS. TV, marked difference in viewing behavior
Video users watch content throughout the day, utilizing PCs, phones and tablets. Online video viewing also plays a complementary role at times when TV viewing drops. The average video viewer watches 3 hours per day, almost twice as much as TV. Most viewers were born in the 70s and 80s, enjoy high income and high education, and spend more time watching online video than TV.

In summary, online video sites complement TV in the areas of viewers, viewing times, and content. Brands that leverage both media can maximize reach.

3. Online video marketing to enhance brand influence
Online video users buy a greater number of consumer durables and digital products. This core group of heavy users can determine the relative effectiveness of campaigns.

Online video ads enhance the influence of brands to products and brands. In a study of users who were exposed to eight different ads on Youku, targets showed higher brand awareness, deeper product understanding, higher preference and intention to purchase than those not exposed to the ads.

In a study of the influence of auto ads placed on auto-related video content, product understanding rose 186.7%, brand preference 109.7%, and purchase intention 130.0%.

About GroupM China
GroupM is WPP’s consolidated media investment management operation, serving as the parent company to agencies including Maxus, MEC, MediaCom and Mindshare.
GroupM is the global number one media investment management group.

GroupM employs more than 1500 people in eight cities across China. With total media billings of more than USD 4 billion (RECMA: 2010 Definitive), GroupM is China’s top media communications group and the industry’s biggest investor in syndicated and proprietary media research and optimization tool development.

Media Contact
Diana Wang  
+8621 2307 7703

About Youku
Youku Inc. is China's leading Internet television company. Our mission is to become the primary source of online video content for Chinese internet users across all Internet-enabled devices.

Youku offers a combination of licensed professional content, user-generated content and self-produced web video content. According to iResearch, Youku attracts approximately 203 million monthly unique visitors from homes and offices and 56 million monthly unique visitors from Internet cafes in September 2010. Youku has a 40% share of total user time spent viewing online videos among Chinese internet users during the second quarter of 2010, according to iResearch. Youku was launched in December 2006. Youku also successfully listed on NYSE on December 8th, 2010 as YOKU.

About Sinomonitor
Sinonomitor, founded in 1998, is China's leading market research company. Sinomonitor dedicated to providing clients with professional market research and consulting services based on database. The business includes market research, media research, consumption and social research as well as marketing consulting.

It has beeen playing a leading role in FMCG, media, tobacco market research industry during the 15 years of development. With branches in Beijing, Shanghai and Guangzhou, Sinomonitor has more than 200 professional staffs and a national market research network.

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