Sina Weibo advances monetization process game free period June end

After Facebook announced the launch of the IPO, Chinese companies with social concepts once again became the focus.

Tuesday, Sina announced the fourth quarter of 2011 and the full year earnings. Earnings showed that Sina Weibo registered users have exceeded 300 million, the daily active user ratio of 9%. Sina's chief executive and President Charles Chao revealed that in 2012 Sina Weibo will invest 1, 600 million U.S. dollars in the second half of this year to start charging services for gaming platforms.

In 2011, Sina achieved net revenue of 482.8 million U.S. dollars, up 20% from the previous year, and should account for a net loss of 3.2.1 billion dollars, mainly related to the decline of investment in China real Estate Information Group and Macquarie Investment.

Game Free period June end

While Sina Weibo users continue to grow, investors are increasingly concerned about their earnings patterns behind the continued increase in operating costs. In Tuesday, Chao said in the earnings meeting, Sina Weibo will accelerate the monetization process this year, and for the first time explicitly will use the Display advertisement system, the game platform fees, as well as the Enterprise version Micro-blog and other monetization means.

Among them, last year on-line game platform, the free period will end in June this year, starts the charge service from the second half. And in the main profit model "platform advertising", Sina will launch a micro-blog display advertising system in the late two quarter of this year, based on user information and interest to achieve accurate delivery, the second half of the introduction of self-service advertising system to help small and medium-sized enterprises and other small customers to advertise, in addition to the introduction of a mobile terminal advertising format.

Chao said: "This year will have some meaningful revenue, although the proportion of total income is not very high, but should be able to lay the foundation for the next annual income." ”

Micro-blogging increases operating costs by 80%

Earnings showed that Sina's operating costs rose to $60.73 million trillion, up 30% year-on-year, and operating costs rose 82% to 66.72 million dollars year-on-year. Sina believes that the growth in operating costs stems mainly from human-related spending, marketing spending and increased spending on infrastructure related to microblogs.

At a subsequent analyst meeting, Mr. Chao revealed that 2011 of Sina Weibo's investment in the 110 million-120 million U.S. dollar, which has reached $35 million in the fourth quarter.

The outlook for Sina Weibo's earnings is likely to be clearer as early as the fourth quarter of 2012, according to a future asset release report. Meanwhile, the report argues that the biggest difference between Sina and T W Itter and F Acebook is that Sina Weibo will eat away at its own portal, while T-Itter and F acebook are eating away at other companies. Earnings showed that 2011 Sina achieved advertising revenue of 3, 68.8 billion U.S. dollars, up from the previous year's growth of 27%.

In this regard, Analysys international analyst Dongxu, said in an interview with reporters: "Sina Weibo commercialization of the promotion of display advertising, micro-video and other forms of advertising diversification, for the promotion of Sina's overall media value benefits, will not have a direct impact on the revenue of the portal advertising." "She believes that Sina Weibo's most valuable resource is the mining and application of user data." "2011 Precision Advertising is also in the user's common data crawl applications, such as age, time, Internet location, etc., with the 2012 precision advertising more commonly used, Sina Weibo based on the advantages of multi-dimensional user data, development will be more favorable than other institutions to launch similar services." ”