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Sina Microblog Reveals In-Stream Ad Pricing

Tencent Tech, 3/14/13

Chinese internet company Sina's (Nasdaq: SINA) Weibo microblogging division held a low key promotional meeting today in order to announce the company's pricing models for its new in-stream advertising product, which has been officially given the name "Fensi Tong."

According to a source who attended the conference, there are two pricing models for "Fensi Tong." One model is to use the cost per mille (CPM) measurement, charging RMB 5 per thousand impressions. The second model is similar to Baidu's (Nasdaq: BIDU) paid search ranking system, charging customers based on the number of times people interact with the ad. Tracked actions include forwarding the ad, following a link on the ad, following the ad's sender, or saving the ad. The minimum bid will be set at RMB 0.5 per action, with higher bids accepted in increments of RMB 0.1.

Businesses that decided to opt-in to the service at the conference were exempted from paying a one-time fee of RMB 600 for authentication and opening an account. However, RMB 3,000 was required upfront to initiate the service. Approximately 150 people attended the promotional meeting.

Editor's Note: For more information on this topic, please see "Rumor: Sina Microblog Tests In-stream Ads at Top of Feed," MD 2/01/13 issue.

Keywords: online advertising Fensi Tong Internet Sina microblogging SNS advertising business model

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