According to the data in 2017 Q1 Quarterly Monitoring Report on China’s Market of Online Video Advertising issued by Analysys, the market scale of China's online video advertising reached RMB 9.31 billion. Influenced by seasonal factors, the market scale has shown a quarter-on-quarter decline of 6.6% and a year-on-year increase of 39.2%.

The market scale of China’s mobile video advertising reached RMB 5.85 billion and occupied 62.9% of the overall video advertising market shares in the first quarter of 2017.  

According to the data in 2017 Q1 Quarterly Monitoring Report on China’s Market of Online Video Advertising issued by Analysys, QIYI, Tencent Video and Youku&Tudou ranked top three in China's online video market income in the first quarter of 2017 with the shares of 21.6%, 21.5% and 20.8% respectively.
According to Analysys, the development of China's online video market in 2017Q1 represents the following new features:
I.    Online video companies remain focused on the innovation in advertisement marketing
In the first quarter of 2017, advertisers still showed high recognition of network video advertising and marketing, and network video companies constantly improved their commercialization capabilities through the innovation in advertising and marketing products & technologies and provided the advertisers with continuously upgraded marketing schemes through the deep fusion of contents and brands. Considering that the traditional advertisements tend to be ineffective, QIYI has innovatively promoted “IN Widespread Product Trees” and connected PC end, mobile end, and TV end to realize pan-platform development; following its privatization and affiliation to Alibaba, Youku has strengthened the integration and linkage with other sections of Alibaba and integrated the resources to increase the promotion and diffusion value. For instance, it has launched the campaign of “AR Red Envelopes”, which can realize deep communication with users by the innovative “LBS+ AR+ Red Envelope” interaction and facilitate brand promotion. In addition, Sohu Video has pioneeringly initiated dynamic floating button ads and dynamic opening ads to realize advertising effects at the mobile end and reoptimized user experience by innovative interaction.
II.   Deep layout of online content and great value of online variety shows
In the first quarter of 2017, IP dramas such as Once Upon a Time, The Rise of the Qin Empire, and In the Name of People made a hit, and internet works were simultaneously played on multiple platforms and widely discussed. With the great popularity of IP dramas, online video companies have gone deeper in the network content, which have been effectively exploited in reliance upon the novel content and diverse users, especially for the rapid development of online variety shows. AIQI has developed Who Can Who Up on the basis of Let’s Talk, and Love in Thoughtful Conversation, Fans! Fans!, Eat and Drink Extravagantly and other quality programs have also drawn the attention from users; Roast, a program jointly developed by Tencent Video and Fun Factory, has created a new era of American comedy and talk show in China and ended with over 1.3 billion plays; Youku and China Hunan TV have co-produced 2017 Happy Boys, which has evoked the memories 10 years ago in the minds of the audience; Souhu TV and Letv have also energetically enhanced the allocation of online resources and the layout of online variety shows. With respect to commercialization, in addition to the traditional approaches such as title sponsorship and hard-sell advertising, online variety shows have stimulated content marketing and displayed increasing profitability through the connection with original content and innovative product placement.
According to Analysys, the online variety shows produced by the platforms have constantly satisfied the consumption needs of the Internet users for culture and recreation in content creation thanks to the use policies as to self-produced online variety shows and favorable capital environment. User interaction and content influence have been improved through short videos, live streaming, etc. In addition, the commercialization way integrating advertisement, payment, and e-commerce will gradually contribute to a favorable operational mechanism and a new boom in the market of online variety shows.
III. Accelerating and deepening media convergence, continuously expanding boundaries of online video industry
With the deeper media convergence since the beginning of 2017, “People’s Live Streaming”, which is jointly produced by New Media Center of People's Daily, Sina Microblog, and One Live Streaming, has been formally launched; the formally launched Mobile News Network of CCTV News is a cloud platform newly developed by CCTV News and has realized the linkage between different screens, interaction and sharing, and socialization function; during the CPPCC & NPC, the total visits of the live program, Ongoing Sessions, launched by People’s Network in combination with Tencent have exceeded 100 million times. With the rapid video development, media convergence has further developed in both resources and content form. Thanks to the new technology of mobile video, traditional media have overcome numerous difficulties with the broad influence on the innovative development of online video industry and further stimulus for the sustainable expansion of the boundaries of online video industry.
For more information about online video market, please keep an eye on Analysys's official WeChat account or call at 4006-515-715 for customer services.