Kaixin001: China’s Apple of Social Networks

KAI XIN, both pronounced with high tones, means happy. WAN, low tone from deep in your throat, means network. Thus, KAI XIN WAN is the happy network.

XIAO NEI, both with downward tones i.e. start high, finish deep in your throat, means ‘school inner’ or on-campus network. FYI.

Kaixin001: China’s Apple of Social Networks

by Guest Author on October 16, 2008

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Kaixin001, the latest newcomer to the Facebook clone wars in China, is China’s fastest growing social network having amassed a staggering 7.5 million users in the first 5 months since it launched in May 2008. The site tripled Twitter’s traffic reach in the month of September alone and is currently the 250th most popular site on Alexa worldwide.

Compared with rival incumbent Xiaonei, which targets college students, Kaixin001 appeals to white-collar office workers with a simpler UI that is more intuitive to older audiences. This is a significant detail in China, where one in four college students does not own a computer and can only access Xiaonei by walking to an Internet Cafe and paying by the minute. White-collar office workers by comparison, spend an average of nine hours a day in front of the computer…

Web Audience for Games Soars for NBC and Yahoo

By BRIAN STELTER

Published: August 24, 2008

A slide show from the Web showed Bryan Clay, the gold medal winner in the men’s decathlon.

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…The ratings for NBC’s television coverage of the Games were record-breaking this month. But the extent to which the Internet served as a supplement to television was unprecedented, and there were two clear winners: NBC’s own Web site and Yahoo’s Olympics section.

Benefiting from the growth in broadband Internet access, NBCOlympics.com served up more than 1.2 billion pages and 72 million video streams through Saturday, more than doubling the combined traffic to its site during the 2004 Games in Athens and the 2006 Games in Turin. The popularity of the site will very likely make digital rights more significant in next year’s bidding for the 2014 and 2016 Games….

NBC, as the holder of United States rights to the Olympics, was the sole source for online video and the only media organization that could use the Olympics logos. But Yahoo, which offered a feature-oriented mix of news stories and slide shows, gave NBC a run for its online advertising money, or at least audience, attracting just as many visitors, according to Nielsen.

“The demand that we’re seeing has far exceeded even our wildest expectations,” said Jimmy Pitaro, the head of sports and entertainment for Yahoo.

Olympics sites operated by AOL, ESPN, Sports Illustrated, the Beijing Organizing Committee, The New York Times, and USA Today also had high levels of traffic, according to Nielsen. They differentiated themselves from the NBC site by offering slice-of-life features and entertainment stories. (The top Olympic story on Yahoo this month was, “Why divers always take showers.”)

NBC cites statistics that show its site had a clear advantage over Yahoo’s. But Nielsen Online’s numbers show that Yahoo drew an average of 4.7 million unique visitors a day through Aug. 18, compared with 4.3 million for NBC. The third-ranked site, AOL’s Olympics section, had 1.3 million visitors a day.

NBC treated the Olympics like a research laboratory, and it says it is gleaning information about how people preferred to consume content from its combination of television, online and mobile offerings. (Critics charge that because the network did not stream the most popular sporting events live, its findings are skewed.) Regardless, the network is using the Olympics to assert that TV is the preferred medium of consumers, with the vast majority of viewing — 93 percent — done via television…

NBCOlympics Wins Lead Medal: Only $6 Million In Olympic Video Ad Revenue

Two drawbacks of doing everything possible to protect your broadcast franchise:

1. Infuriate sports fans who want to watch events live.
2. Leave money on the table.

NBC only made $6 million in online video ad revenue, estimates eMarketer. This is a far cry from the $23 million CBS is said to have made from this year’s March Madness.

Time For China’s Web Advertising Industry To Grow Up?

China SPAC Goes Operational: Alyst Acquisition Corp. (AYA)

There was a release this morning showing that a Special Purpose Acquisition Company (SPAC, or blank check company) called Alyst Acquisition Corp. (AMEX: AYA) has signed an agreement to acquire all of the shares of China Networks Media Ltd., a British Virgin Islands company which owns and is in the process of acquiring television station operating assets in the People’s Republic of China.  

Alyst will redomesticate to the British Virgin Islands by merging with China Networks Holdings immediately prior to consummating its transaction with China Networks.  Chardan Capital Markets, LLC is acting as exclusive advisor to the transaction.

China Networks’ Advertising Networks Limited has positioned itself as a fast growing television advertising network in China.  China Networks provides local, national and international advertisers with direct access to China’s rising audience of consumers.  Through long-term contracts, it also operates as the exclusive advertising arm for stations within its network.

China Networks was established in October 2007 and has completed the consolidation of two television advertising companies to date with additional negotiations in progress with other Chinese stations.

Combined “audited carve-out revenue” for Kunming Taishi Information Cartoon Co., Ltd and Shanxi Yellow River and Advertising Networks Cartoon Technology Co., Ltd for the year ending 2007 was approximately $21.0 million, with net income of approximately $14.7 million.  China Networks’ consolidation of each
yields revenue of approximately $21.0 million and net income of approximately $7.4 million.  As a combined entity, China Networks’ pro forma two-year CAGR was 15%.

Jon C. Ogg
August 18, 2008

Time For China’s Web Advertising Industry To Grow Up?

Ad dollars are pouring into China this year, courtesy of the Beijing Olympics. Yet even though the nation boasts more Web users than any other, only 4% of the country’s ad dollars ($1.4 billion) are spent online, compared to 17% in the US.

And while advanced ad-targeting technologies from companies like Tacoda and Blue Lithium are de rigeur in the U.S., and a key component in the strategies of AOL (TWX) and Yahoo (YHOO), it doesn’t exist in China.

That may soon change. Kaiser Kuo, editor of Ogilvy Digital Watch, interviewed Grace Huang, an ex-McKinsey consultant who launched PinYou, which is building a behavioral targeting ad network in China. Until now, she says, advertisers are still relatively unsophisticated in China, and aren’t yet demanding more precision. So no one’s really trying to tackle behavioral targeting yet.

But she thinks behavioral targeting will take hold for two reasons: “(1) we have the demonstrated success from the US, and (2) the Chinese have proven to be quicker to adopt now advertising techniques, as was evidenced with search marketing.”

Not surprisingly, the Chinese don’t really obsess over their online privacy in the way Americans and their elected representatives do. But Huang says her company will take the issue seriously, and says PinYou is “thinking of various ways for consumers to opt-in and opt-out.”

The bigger hurdle in front of behavioral targeting is the same one in front of all Chinese advertising: the lack of reliable third-party measurement. Much online advertising in China is still sold on a “cost-per-time” basis, rather than a CPM, or cost per thousand impressions. Why? Because buyers don’t reliably know how many impressions they’re getting, or paying for.

As Victor Koo, founder of video-sharing site YouKu points out, comScore and Shanghai-based iResearch don’t yet measure Internet cafes, where 30% to 40% of China’s 250 million Internet users log on. Getting those kinds of problems solved will do a lot more for China’s online ad business than sharper targeting will accomplish.

China Ad Market Growth Slowing, Still Expected To Become The World’s Second-Largest Ad Market Next Year

Michael Learmonth 

Olympics hype aside, ad growth is slowing down in China. But it’s still on track to become the second-largest ad market in the world next year, according to WPP media buying unit GroupM.

Overall ad growth in China is drop from 22% in 2008 to 19.5% in 2009, a fall-off from the 29% compounded annual growth between 2001 and 2007. Total ad spending in China is expected to total $35 billion in 2008, and GroupM says online advertising will account for 7.3% of spending or $2.5 billion. That’s more bullish than eMarketer’s $1.4 billion 2008 estimate made earlier this year…

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Doing Business in China: China Business Network for online business information … Advice From Debby Cheung, Managing Director, Ogilvy PR China. Advertising and PR …

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TOPICS: CHINA, ADVERTISING. PRINT Published Version of This Article … China. Advertising… Du: China’s advertising market is the largest in Asia excluding Japan. …

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Find Advertising - Advertisement Material, Advertising Stand and more. Manufacturers and Suppliers in China and around the world.

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Beijing Olympics – Who’s Capitalizing on the online Games?

Hitwise Intelligence – Sandra Hanchard – Asia Pacific

August 09, 2008

Beijing Olympics – Who’s Capitalizing on the online Games?

There is no doubt that the Olympics represents a major online media opportunity. As this article in ZDNet Asia points out, search engines have been geared up to distribute the heightened sports-related terms within their respective advertising networks. My colleague, Alan Long has written about the traction of consumer interest in the Olympics across global markets. I’ll focus on paid search activity for the Games in Australia.

Our Hitwise Search data demonstrates that ‘bejing olympics’ sent the most clicks to the Sports – Olympics category, accounting for 6.32% volume, with a ‘paid rate’ of 1.24% for the 4 weeks ending 2 August, 2008*.

It’s interesting to note that other leading terms to the Olympics category in the top 30, such as ‘beijing olympics mascots’ and ‘australian olympians’ attracted significantly higher paid rates of 8.59% and 10.12% respectively, indicating where advertisers are seeking out niche search opportunities.

Live and Yahoo! Search Australia – Strong Paid Rates

In a Hitwise Search Portfolio of 100 leading search variations on ‘olympics’, Google Australia was by far the dominant search engine distributing 75.67% of clicks, with a paid rate of 2.24% for the 4 weeks ending 2 August 2008. Live and Yahoo! Search Australia sent lower overall volumes of clicks, but sent higher rates of paid traffic; 10.3% and 8% respectively.

Yahoo!7 Sport, ninemsn, Telstra and SMH – Leveraging PPC

A Hitwise Search Intelligence report indicates that the official Beijing 2008 (English language) site was the main beneficiary of downstream traffic from Olympic searches, receiving more than 1 in 4 clicks, for the 4 weeks ending 2 August, 2008. Yahoo!7 Sport, ninemsn, Telstra and SMH all received paid traffic off Olympic search terms to their respective websites, with paid rates widely ranging between 3% and 66%. As the games progress, it’ll be interesting to see if media players adapt their paid search campaigns to correspond with the success of Australian athletes or otherwise.

Korea Tourism Organization – Seeking to benefit from Olympic Travel

Sports and News and Media industries as you’d expect received significant volumes of clicks from Olympic searches. Interesting to note that Education – Reference was also up there, receiving 6.82% of clicks (driven primarily to Wikipedia). The Travel industry had high rates of paid search traffic off Olympics searches, with the Korea Tourism Organization website aggressively leveraging PPC for Australian interest in the Games.

NBC Olympics: We Don’t Care If You Hate Us, You’re Watching USA-China Basketball On Tape Delay

Henry Blodget

NBC actually showed Michael Phelps live on the east coast last night as he shattered his own world record in the 400 IM. We watched–and, suddenly, the Olympics were as awesome as, well, the Olympics. If you live on the west coast, of course, thanks to another absurd decision by NBC, you only got to watch the race after reading about Phelps’ victory online, when it was about as exciting as 1970s Superbowls.

(And as if this weren’t enough, NBC is doing the same thing this morning, with USA-China basketball).

Why is NBC making decisions guaranteed to alienate and outrage much of the country? Money, of course. The network apparently believes it stands a better chance of earning back its $894 milllion plus programming costs if it infuriates viewers across the country.

And maybe the network is right. But it’s still a dumb decision…

By CLAIRE CAIN MILLER

Ken Carroll, who runs the popular Chinese-lesson podcast ChinesePod, is taking advantage of the world’s sudden need to know how to say “gold medal,” “100-meter backstroke” or “Where is the basketball arena?” in Mandarin, the official language of China. He has started ChinesePod-Olympics, a specialized version of his popular podcast…

Mr. Carroll started ChinesePod in 2005. Today, it has 200,000 regular users and 300,000 monthly visitors who come to learn Mandarin vocabulary, tones and characters along with tips on how to deal with Chinese telemarketers, politely greet elders or get a new phone number upon arrival in the country. Some users listen to the lessons on the go in China, whipping out their iPod in a taxi for the tutorial on how to interact with a cab driver.