Tuesday, November 10, 2015

Alibaba Group acquired Youku&Tudou (Chinese Youtube) to Strengthen Big Data Marketing

After gaining 18.3% ownership on Youku&Tudou in 2014, Alibaba acquired it at the price at $700 million in Oct.2015 with the purpose of synergizing their advantages on big data and online video so that to maximize the traffic and economics. After the acquisition, Youku&Tudou which covers over 50 million active daily users connected with Taobal, Ali Pay, Ali Cloud, Ali Video Studio to create a holistic ecosystem.  Under this ecosystem, they launched their first product, Buy What you See on Youku&Tudou from Taobao, to commercialize the big data and traffic.

This is a B2C business model. First, the vendor should be able to generate original video content with their product placement.  Second, the vendor would apply for the membership to display their video on Youku & Tudou.  Third, the vendor will be allowed to display the product the places in the video for watchers’ purchase.  And the transaction is linked to and realized on Taobao.  Behind this business model is the synergy of Alibaba and Youku&Tudou’s big data.  Alibaba offers accurate data on what product and SKU are popular to Youku&Tudou which could create the vivid purchase scenes for the consumers.  The connections between the memberships from both Taobao and  Youku&Tudou would offer more powerful consumer insight for accurate marketing.

http://www.netimperative.com/2015/11/alibaba-buys-chinese-youtube-for-3-7bn/

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