China’s online video market reached 11.53 billion yuan (US$1.90 billion) with a growth of 31.9% QoQ and 62.7% YoY in the third quarter of 2015 according to iResearch. Online video advertising accounted for 56.3% of the total online video revenues, among which 39.9% of 2.59 billion yuan (US$0.40 billion) were from mobile.
China’s online video market maintained a high growth rate in the third quarter of 2015 although the GDP slowed down. 56.3% China’s online video revenues came from the online advertising for 6.49 billion yuan (US$1.01 billion), 8.4 percentage points lower than the ratio of Q2 2015. Although online video advertising remained a dominant revenue source, non-advertising sources such as video value-added service revenues and others increased slightly.
Copyright distribution declined in the third quarter of 2015 compared to the previous quarter this year while video value-added service revenues increased slightly. Online video companies should make deeper research on users’ preference and make the video products more catered to consumers to improve non-advertising revenues.
China’s online video advertising market in Q3 2015 increased by 14.8% compared to the previous quarter this year and 56.1% compared to the same period last year. Overall, China online video advertising market has entered a stable growth period thus online video companies should provide a richer and more accurate video marketing services for advertisers to maintain a high growth rate.
2.59 billion yuan (US$0.40 billion) video advertising revenues were from mobile, accounting for 39.9% of the overall online advertising market and 22.5% of the overall online video market. The mobile video advertising market only made up 24.2% in the third quarter of 2014 and 35.4% in the second quarter of 2015. With further development of mobile internet and mobile services, video advertising on the mobile terminal will maintain a steady growth.
Also read: China Online Advertising Insights Q3 2015