China's Alibaba, Youku Tudou Pact on Video Marketing

Jack Ma Alibaba - H 2014
AP Images

Jack Ma Alibaba - H 2014

Two of China's biggest Internet companies are collaborating to push big-data marketing in the country

Youku Tudou and Alibaba, the "biggest entertainment company" in the world, announced on Wednesday that the two companies will work together to drive the adoption of big data in video marketing in China. 

Alibaba's online marketing technology arm Alimama will use its data and technology to support the innovative online video marketing techniques of Youku's View and Buy and Tudou's Merchant's Video Channel, as well as help small companies by making online video marketing service more accessible to them. 

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The announcement is another move by Alibaba away from its core business of e-tailing, and further into marketing, advertising and Internet services. Alibaba, much like Youku Tudou, has been very aggressive in diversifying its business, both companies most notably seeing movie production as a lucrative industry in the world's second-biggest movie market. 

Earlier this year, Alimama launched online video marketing services in collaboration with other major video websites in China to help widen the relevance and reach of online video marketing by Alibaba's Taobao Marketplace and merchants to a broader base of customers. 

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Youku Tudou and Alimama will also jointly establish a Marketing Innovation Lab, the aim of which is to create online video marketing products like View and Buy and Merchants' Video Channel. View and Buy's technology allows consumers to click on merchandise that appears in the video they're viewing and make a purchase without interrupting the playback. The Merchants' Video Channel, on the other hand, gives merchants an opportunity to market their products and services by themselves where they can create fun videos to promote their products, get consumers' attention and trigger purchasing actions.