Koo says the mobile video business model is open this year

The mobile internet era has come, mobile video is still far?

"2013 will be the year of mobile video marketing. Koo, CEO of Youku Potato Group, gave a positive answer at a 2013-year resource promotion meeting in Youku, Shanghai.

This is not a spontaneous statement. According to an unaudited financial report released by Youku Potato Group in the third quarter of 2012, the mobile end of Youku group accounted for 20% of total traffic. This ratio is enough to justify any company turning it into its main business quickly.

The stumbling block remains a business model. Archie CEO Gong once said that the video industry will burn at least two years of money, profits to 2014 years. and Youku Potato Group involved in mobile video business at this time, is it an endless investment, or to activate its entire video strategy of "surprise"?

Capture small screen

Koo this time to throw a "first longitudinal and then horizontal" of the inverse thinking problem.

The domestic video industry has been formed for more than 7 years, it can be said that at least 5 years after the enterprise to explore the core issue of only one profit. In the face of this, video companies have tried many ways to buy copyrights, innovative value-added services, upgrade technology ... But these are the vertical deep exploration around the video products.

Moving into the mobile video field is a start in the field of video landscape development. "Now that the era of mobile terminals has come, it will be growing faster in the next 5-10 years," he said. This is also the three nets in the era of unity we must go to think and explore the field. "Koo thinks.

"Big video is an inevitable trend, like other areas of the Internet, who first seize the initiative, who have more opportunities." "Analysys International analyst Guo Yang said.

Advertisers are also gradually recognizing the "big video" concept. That is, traditional TV, PC video, mobile video and so on from large to small size full coverage. And the latest trend is that with the rise of the mobile internet, advertisers in the portfolio to do, want to allocate more resources to the smallest size of mobile video.

"When VV (daily video playback) broke through 100 million (times), it was the starting point for mobile video marketing, which was reached in January 2013." This is a tipping point, and to the era of commercialization. "Koo said.

Such a positive answer seems to imply that Youku has already delineated mobile video as another source of revenue for the future.

But with users and channels, can Youku break the deadlock and make a profit reversal? After all, Sina, Tencent, Baidu and other internet giant engine mobile Internet products profit is not clear.

According to the Koo definition of 5-10 years of mobile video development period, Youku Potato Group is now the main purpose of the layout of two: first, the competition for a larger market and user base, to develop into a cool potato "watching habits." Second, as the largest video site in the mobile video field has such a big move, will drive the mainstream market faster move to the road of mobile video, after all, only the market fully mature, only the basis for profit. Before, Youku has done a lot of experimenting on mobile video, Apple and Android have launched an app called the customer, an innovative application that provides users with the ability to shoot, edit, create, upload, and share one-stop services at mobile terminals, and adds many social networking attributes, Users can fold the uploaded video into a "paper plane", throw it to the airport and wait for a stranger to claim it. Other users can pick up the video content according to the exciting degree of the paper aircraft discarded or refueling, refueling video will have the opportunity to become a hot video highlights recommended, and can get some rewards.

to the money.

At the same time as fighting mobile video battlefield, the traditional video business of Youku Potato Group is showing a profit dawn.

In the Youku potato Group's media resources promotion meeting, Youku Potato Group Senior vice president, Tudou Chief Strategic officer Huzhou Special emphasis "group will stick to Youku better cool, potatoes more potatoes" double brand strategy.

The reason why the two brands are now mentioned is inextricably linked to the latest quarterly results of Youku, which show that net income is 502.2 million yuan, exceeding the expected cap on business forecasts announced last quarter. On the overall gross profit, the Youku portion was RMB 181.4 million, up 168% from the same period in 2011.

Youku Potato was completed on August 23, 2012, which also marks the first overall appearance after the combination of Youku, and it now appears that the adverse reactions are not obvious and can be successfully entered into the next stage of profitability.

"Youku has China's largest, second-largest video site and two of the most valuable online video brands," says Koo. The company has now become a unique customer and content partner of the one-stop service provider, I believe that the future will release more synergies. ”

As we all know, video site revenue mainly from three parts, traditional patch advertising, product marketing and content marketing. It is understood that Youku's sales reform is to two platform of the advertising and the overall operation of the whole, the other two operations are separated management model.

"SMD Advertising customers more emphasis on the platform, now Youku two platforms covered by nearly 80% video users, the daily amount of up to 400 million (times), this platform is clearly the best in the country." "Huzhou said. It is understood that the days of the cat's double 11 shopping carnival to try the Youku potato dual platform placement.

Product and content marketing separate operation, mainly considering the Youku production and potato image style differences, if mixed together sales, not only reflects their own characteristics, but also drag each other.

Third-quarter earnings showed that the net growth of Youku potatoes was mainly: advertisers ' average advertising investment increased from $1 million per person to $1.7 million, and the number of advertisers grew from 296 to 316, representing an increase of 70% and 7% respectively over the same period in 2011.

But it is worth noting that the loss of potatoes compared to the last quarter of the expansion, of course, this is mainly due to the merger of the changes in options and accounting, law firms, such as the cost of one-time costs, and Youku has been profitable.

"Tudou in the daily coverage of the number of people, weekly coverage and weekly access to these key data, are in the second place in the industry, the Internet or traffic is king, the outside world that Youku will play down the potatoes, the potato will be sacrificed judgment too arbitrary." "Analysys International analyst Guo Yang said. December 2012, the new generation of market monitoring agencies for China's main video site brand image and brand influence of the study also supported this view: whether in the overall population or the breakdown of the crowd, Youku, potatoes Two brands are still in the network video industry leading position.