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The monetization challenges faced by Chinese social networking giants Sina (SINA) and Renren...

The monetization challenges faced by Chinese social networking giants Sina (SINA) and Renren (RENN) will drive their shares lower, says Maxim Group's Echo He. The Chinese ad market is still dominated by TV spending, notes He, and that limits the ad dollars available to online firms. Barclays made a similar point last year about TV's dominance, but saw it as a reason to be bullish on Chinese web names, predicting they'll keep growing their share of ad dollars
Comments (2)
  • WIthout giving this much thought.. I tend to agree with Barclay's.

     

    I don't have a TV and haven't had one in over 3 years now. I only have internet.

     

    This guys logic is like saying DVD player manufactures shares will go lower because everyone has VCR's and money will got to VHS movies.
    22 Mar 2012, 12:23 PM Reply Like
  • Maybe we should start with the facts: Does anybody
    have any stats on how many TVs are owned by Chinese
    individuals/families, how many online accounts are active, as a
    percentage of the total population. Demographics are everything.
    OF course, this should be tempered by the channels
    available to the Population of China, as modified by the party.

     

    Jason- I haven't watched much tv, either, and watched the
    Superbowl online this year.
    On the other hand, I think the Chinese mainland is much
    more varied than you or I imagine. Perhaps a 1/3rd have been
    integrated into the new communist party vision of what china
    should be.

     

    Another 1/3rd work at the likes of factories such as Foxconn &
    seek work while the rest toil the soil.

     

    Maybe I'm wrong, but correct me- Are 2/3rds the population
    of China now using DVDs, computers, etc.?

     

    I don't think so. Maybe 1/3rd. Hugh #, just the less,
    but not the entire country.

     

    Guess there's room for TV's and VCR's there, in China!
    Just like in the early '80s with the proliferation of VCRs in the US,
    copying everything was the norm. Why should the Chinese
    be any different? DUHH?

     

    It's not that the 'Party' is willingly ignoring the pirating of copyrighted
    materials, it's the sheer enormity of those doing so, on
    an individual basis in China.

     

    The cat's out of the bag. This means, as long as people
    can communicate, they will share ideas with each other.

     

    Common ground started as a war strategy.

     

    -Ric
    22 Mar 2012, 10:10 PM Reply Like
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