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Sina Microblog to Start Monetizing in Q2 2012

Sohu IT, 2/28/12

Charles Chao, CEO of Chinese internet company Sina (Nasdaq: SINA) said in a teleconference for the company's Q4 financial report today that Sina would step up efforts to monetize its Weibo microblogging platform this year. Chao predicted that a new ad display system for Weibo would launch in Q2, while Sina's gaming platform will begin charging during the second half of the year.

"We plan to accelerate our process of monetization this year," Chao said. "Our profit model will rely primarily on platform advertising: a Weibo display ad system will be first, and will offer precise user targeting based on user data and interests. This is planned for a Q2 launch, possibly in mid- to late Q2. Our goal for the year will be to substantially increase the number of corporate Weibo accounts, and to build a basis for future profits by offering enterprise services. During the second half of this year, we'll also introduce a new 'self-help' ad system allowing SMEs and smaller clients to place ads. We may also add an ad model for mobile terminals, particularly for mobile client applications."

"In H2, we plan to begin offering paid services, including through our gaming platform," Chao said. "We launched our game platform last year, and the majority of its services are still free. We don't have revenue-sharing arrangements with developers, but the free access period for the service will end in June, after which we'll begin charging for access."

More visitors accessed Sina Weibo from mobile handset clients than did from computers in Q4 2011, Chao said. By the end of December, mobile Weibo clients also led computers by usage time and page views.

Editor's Note: For more information on this topic, please see "Sina Microblog Targets 1 Mln Enterprise Users in 2012," MD 2/23/12 issue.

Keywords: wireless online advertising business model online gaming Charles Chao Internet Sina microblogging

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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