Kaixin001 2010 Ad Revenue to Exceed RMB 200 Mln
China Business News, 6/10/10
Yuan Liping, general manager of PR for Chinese social network site Kaixin001, responded today to rumors that the site had set advertising revenue goals of RMB 200 mln for 2010, saying that the rumors were false and that the company had not set internal sales goals of any sort. Yuan did say, however, that revenues would in fact exceed RMB 200 mln this year.
The majority of Kaixin001's advertising revenues come from package deals covering embedded ads, branded accounts, and hard advertising; the former two account for 2/3 of revenue; the latter for the remaining third. Embedded ads are the most popular among advertisers, particularly ads embedded in Kaixin001's popular "Happy Garden," "Happy Farm," and "Happy Restaurant" social games. Branded accounts allow brands to set up "organization accounts," of which regular users can become fans to receive promotional information and updates, a service for which Kaixin001 charges companies quarterly fees. Kaixin001 CEO Cheng Binghao has stipulated that only one brand may embed ads in any given game, and that embedding may only take place after the game has developed a solid user base.
Guo Wei, Kaixin001's deputy GM for marketing and external relations, said that the site currently has a stable figure of approximately 20 mln active users. Guo said Kaixin001 reached 20 mln active users at the time when Kaixin001 reached a total user base of between 60 and 70 mln users, and that the figure continues to hold steady.
Over the past five months, Kaixin001 has added more than 100 new employees. Product and technology department staff account for the greatest proportion - one-third - of the company's more than 180 employees.
Keywords: online advertising forecast SNS in-game advertising Cheng Binghao Guo Wei Internet Kaixin001 revenue active users HR social game Yuan Liping
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