iResearch report on BaiduTV

Today, iResearch published a report on BaiduTV's influence on online video industry.

The report considers BaiduTV as a major milestone for Baidu for several reasons.

The online video advertising service will utilize the over 150,000 union member's resources with very broad reach. Many of these small sites are dependent on sharing Baidu's ads revenue for living. Adsit will serve as BaiduTV's exclusive agency and will provide all the video ads services to advertisers(similar to the role of Doubleclick). The arrangement will be very attractive to advertisers who are willing to invest in video ads.

The rapid expanding user base is also important factor. Since the launch of Baidu video search, Baidu has seen unparalleled growth in number of users.

The bar graph shows the number of users each month. The numbers are in 10,000. Total number of users has grown from Feb's 1.8 million to over 17 million in Aug. The blue line shows month over month growth rate, almost doubling every two months.

The system has very unique ecosystem. Adsit will connect advertisers through Baidu's video search with relevant contents from advertisers. Adsit will input video ads either through pre-roll or with ads before connecting to websites of Baidu's union members. Adsit also provide follow-up analytic data to advertisers.

The full report in Chinese here.