Anita Davis
Aug 3, 2009

Chinese media agencies unite to back online video

BEIJING - Media agencies including Mindshare, Starcom, ZenithOptimedia, OMD, Carat and local shops have formed a committee aimed at driving advertising dollars from TVCs to online video sites in China, centred around the creation of new ad content.

Chinese media agencies unite to back online video
The China Online Video Standardization Executive Committee (COVSEC) aims to have a written template, drafted and signed-off by all agencies, that outlines an advertising model for online video networks in an effort to shift traditional TV ad budgets to web TV, said Kenny Bloom, CEO VisiTek Holdings, which oversees the committee.

Bloom added that COSVEC aimed to have a draft with a standard montetisation practice completed by October.

According to Bloom, the standard would apply exclusively to video ads and TVCs on video sites, and would facilitate the co-operation of clients and media agencies’ television and interactive departments.

“The video industry started in the wrong direction and it need to be correcting itself over the next year or two,” Bloom said. “And it needs to be corrected - it’s the only digital industry where, the more users a video site gets, the more expensive overall operations get, so this really is a necessity for anyone who does video on the internet.”

Bloom added that the online video industry, which has struggled to build a profitable business model around the world, has modelled itself on YouTube. “A lot of people tried to follow that model and that has been proved not to work,” he said.

COSVEC additionally aims to standardise and simplify creative and ad placement and will enlist a third-party auditor and methodology to verify traffic data each quarter and measure the overlap in viewership between online and offline television.

Bloom added that China was the easiest market to launch such a committee because its online video-sharing market is the right size, with only a handful of major players including Tudou and Youku, and “with a large advertising spend and few entertainment alternatives in China it’s even more important.”
Source:
Campaign China

Related Articles

Just Published

14 hours ago

Agency Report Cards 2024: We grade 25 APAC networks

The grades are in for Campaign Asia's 22nd annual evaluation of APAC agency networks. Subscribe to read our detailed analyses.

14 hours ago

Agency Report Card 2024: Havas Media

Newly independent and armed with its Converged strategy, Havas Media is pushing for growth in APAC. But with a limited regional presence, key account losses, and stiff competition from larger, tech-savvy rivals, the agency faces an uphill battle to prove its relevance and scalability in a cutthroat market.

15 hours ago

WPP launches data solution Open Intelligence

The network is calling the solution the advertising industry’s 'first large marketing model'.

15 hours ago

2025 Cannes Contenders: UltraSuperNew creatives ...

UltraSuperNew's creative chiefs in Tokyo pick the APAC campaigns that stand a good chance of winning a Lion.