CHANGSHA, Hunan (AdAgeChina.com) -- One of China's most popular TV broadcasters, Hunan TV, is trying to make online video pay in a new deal with an online ad network. The ad network, AdChina, did a similar deal three weeks ago with China Network Television (CNTV), the digital unit of China's national state broadcaster, China Central Television.
AdChina, which operates the largest online ad network in China, will set up a joint online video ad lab with Hunantv.com (www.hunantv.com), a newly formed media platform run by Hunan TV, the Changsha-based parent company of Hunan Satellite TV.
One of China's most successful provincial satellite channels, Hunan TV has produced hits like the "Mengniu Yoghurt Super Girl Contest" and a Chinese version of "Ugly Betty."
Hunan TV's online platform is built around five areas -- news, video, a social networking community called Mango World, online games and wireless services.
The new deal will allow Hunantv.com to use AdChina's AdManager, an ad serving, tracking, and brand measurement platform that reaches over 350 million people, more than 90% of Chinese internet users. AdChina, meanwhile, will gain access to the ad inventory on Hunantv.com.
"Online advertising is an important revenue source with significant growth potential for Hunantv.com," said Hunantv.com's general manager and CEO, Zhang Ruobo. "We will develop more innovative ad formats, strengthen ad inventory management and build a more powerful ad serving and tracking system."
China's online ad market was worth over $2.9 billion in 2009, up 21.2% from 2008, according to iResearch. The market research firm eMarketer predicts video advertising will increase 35%-45% globally in the next five years, to about $5.2 billion by 2014.
Earlier this month, Hunan TV announced a partnership with ITV, the U.K.'s largest commercial broadcaster, to develop and license entertainment content for the Chinese TV market. The new programming, developed jointly, will be produced by Hunan Satellite TV. ITV Studios will represent the worldwide rights outside China.
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