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What You Need To Know About Sina in 2013
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What You Need To Know About Sina in 2013

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Sina is struggling to finds its way in a mobile world. To make things even more difficult, Sina needs to walk a fine line with China's strict censorship laws. …

Sina is struggling to finds its way in a mobile world. To make things even more difficult, Sina needs to walk a fine line with China's strict censorship laws.

To help Fools understand the complex inter-workings of this company, we've put together a brief slideshow on what Sina does, how it makes its money, and what future prospects the company is working towards.

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  • 1. January 25, 2013 Is SINA The of China?In the early 2000s, SINA was the “Yahoo of China”. As a web portal, SINApartnered with online media companies and local newspapers to delivercontent on everything – from political to entertainment news. Thecompany makes money from multimedia ads. 1
  • 2. January 25, 2013 Its Portals Are Moneymakers Percentage of Revenue From 76% Advertising 72% 64% 2009 2010 2011 SINA breaks down reveneu by “Advertising” and “Non-Advertising Revenue. Through Fiscal Year 2011, Weibo does not count towards advertising budget.SINA.com and SINA.cn are the company’s cash cow. As Chinacontinues to modernize and ad dollars move from offline to online, SINA hasseen its revenues increase accordingly. As of last fiscal year (2011), SINAearned $76.7 million in revenue. 2
  • 3. January 25, 2013 Falling Behind Competitor - QQ.com #1 Web Portal in 2013 and Beyond! Baidu was and is the #1 site in China. Taobao.com, an e-commerce site is #3 as of Jan. 2013.SINA was the #2 most visited site in China back in Nov. 2005.Conglomerate Tencent and it’s web portal QQ.com has beat out SINA. SINAhas dropped to #4.Source 1 : http://newsletters.fool.com/18/coverage/issues/2005/11/01/03.aspx 3Source 2: http://www.alexa.com/topsites/countries/CN
  • 4. January 25, 2013 The Portal Is Dying How can we become the „entrance‟ to the mobile internet — we‟re all bewildered by that, and we‟re anxious or perhaps even frightened by it. If we can‟t become that „entrance‟ then the value of our business and our market share will not change [i.e., improve] significantly. - SINA Vice-chair Wang Gaofei , Aug. 9 2012 In Fool Speak: SINA can’t become a web portal on mobile if mobile users don’t need it. They have content apps. 4Source: http://www.techinasia.com/sina-vp-wang-gaofei-talks-stats-weibo-woes/
  • 5. January 25, 2013 SINA Must Diversify Its Revenue Streams Revenue Breakdown There are 564 million internet users, but mobile is quickly becoming the platform of choice with 420 million mobile users. Most web portal companies have diversified beyond desktop-based revenue. Unfortunately, SINA is finding it difficult to monetize mobile.Best available data from Q1 2012 shown here for relative comparison.Source: http://www.techinasia.com/comparing-revenue-chinas-major-internet-portals-tencent-kicking-ass-sina-872/ 5Source: http://www.techinasia.com/social-media-and-social-marketing-china-stats-2013/
  • 6. January 25, 2013 Here Comes Weibo – the “Twitter of China”SINA launched Weibo.com back in Just like Twitter, Weibo allows2009, and the site just came out with users to posta partial English version in January messages, follow other users2013. and repost a user’s comment.Though Weibo.com includes Weibo users can also postgaming, music, and other audio comments, viewservices, “Weibo” is a general term threaded comments, and postfor micro-blogging, but many use emoticons.the word to refer to SINA’s servicespecifically. 6
  • 7. January 25, 2013 SINA’s Weibo Ad Revenue Is Growing Percentage of Advertising Revenue 16% 10% 2nd Qtr 2012 3rd Qtr 2012SINA makes money from Weibo through online ads (like the NBA adabove), special services for corporate and VIP accounts and social gaming.Weibo’s percentage of SINA’s ad revenue is small, but accelerating.Weibo’s ad revenue spiked from 10% to 16% of advertising revenueover last quarter. 7Source: http://www.reuters.com/article/2012/11/16/net-us-sina-results-idUSBRE8AE1VL20121116
  • 8. January 25, 2013 Weibo Users Are Coming Online In THE MILLIONS 450 400 350 300 250 200 150 100 50 0 2010 2011 2012Weibo’s users have grown significantly over the past three years. Weibohas 424 million users; for comparison, Twitter has about 640million users. 8Source: http://www.livescience.com/26058-ford-car-apps-china.html
  • 9. January 25, 2013 Still, Weibo Needs To Expand Even Faster Millions of UsersNetease Weibo SINA WeiboTencent Wiebo 0 200 400 600SINA Weibo is growing, but it can’t afford to let up. The company justlaunched an English version of its website to compete with Tencent Weibo. 9 Source: http://www.techinasia.com/netease-weibo-260-million-users-numbers/
  • 10. January 25, 2013 Where Is SINA Now? The company is at a crossroads. With declining website use and difficulty monetizing Weibo, SINA is doing everything it can to become a mobile-first company…Here are four ways SINA might secure a profitable future. 10
  • 11. January 25, 2013 Building a Domestic “Weibo” NetworkIn July, SINA partnered with Baidu In the same month, SINA partnered with(Nasdaq: BIDU) to integrate Weibo an online TV provider to launch ainto Baidu’s new cloud services – “social television” service. Byincluding its new mobile operating expanding content offerings online, SINAsystem. hopes to retain Weibo users.In return, Baidu became SINA’s Source: http://www.bloomberg.com/news/2012-07-12/sina-offers-web-tv-service-to-win-china-default search provider across SINA’s social-networkers.htmlservices. 11Source: http://www.techinasia.com/baidu-sina-partner-mobile-search-cloud-computing/
  • 12. January 25, 2013 Building an International “Weibo” Network In June, SINA signed an In Sept., Apples (Nasdaq: At the Consumer Electronic agreement with social-gaming AAPL) latest Chinese version Show this month, Ford company Zynga (NASDAQ: of iOS came preloaded with (NYSE: FD) announced a list ZNGA) to offer the popular share buttons for SINA of new voice-activated car game “Draw Something” on Weibo, much like Facebook apps in its latest under Weibo Games. and Twitter share buttons. infotainment car system – and SINA Weibo made the iOS6 users can post to SINA list. Weibo from their camera app, photos, Apple Maps, Safari and Apples Game Center . Source: http://www.techinasia.com/ford-sina-weibo-support/Source: http://www.bloomberg.com/news/2012-07-12/sina-offers- Source: http://www.techinasia.com/apples-ios-6-sina-weibo-web-tv-service-to-win-china-social-networkers.html integration-china/ 12
  • 13. January 25, 2013 Copying Its Way Into The FutureIn July, SINA cloned a popular, Silicon In Nov., SINA launched “WeiValley mobile social network and Renmai” or “Weibo Connections”.renamed it “Meyou”. The Meyou app is The LinkedIn-like product allowsakin to Facebook’s mobile app, but with a you to connect withmore intuitive design and mobile-first “people”, “companies”, andexperience. The app only lets you “opportunities”. You can also placeconnect to at most 50 friends. people into different networking circles. Source: http://www.fool.com/investing/general/2012/12/15/1-company-vying-Source: http://www.techinasia.com/sina-meyou-path-clone-app/ to-be-the-linkedin-of-china.aspx 13
  • 14. January 25, 2013 Investing in Your LocationIn July, SINA launched iMaps (“Love Car Maps”) for Android and iOS.iMaps uses Weibo to help users in three ways: finding gas stations and parkingspaces, getting routes and traffic guidance, crowdsourcing route reports. With yourdata, SINA may soon launch more location-based tools to rake in more earnings.Source: http://www.techinasia.com/sina-imap-app-for-chinese-drivers/ 14
  • 15. January 25, 2013But before you invest… …be wary… 15
  • 16. January 25, 2013 SINA Censors…But It’s Not That BadTo comply with China’s censorshiplaws, SINA employs about 1,000workers to censor posts and evendelete accounts. However, allChinese companies must enact similarcensorship measures. Source: http://www.techinasia.com/sina-weibo-censorship-in-2012-review/ Search results for members of the Communist Party, and controversial people, are delayed on Weibo for about a week so censors can make changes to posts before large groups of people can see them. - Image source: Wikimedia Commons 16Source: http://www.techinasia.com/netease-weibo-260-million-users-numbers/
  • 17. January 25, 2013So What Does Censorship Mean For SINA? The Government Citizen AttitudesBut government censorship is a ,0complex issue. Harvard researchersfound that Beijing actually allowsgovernment criticism to shinethrough on some blogs 84% "Dont“This is a city government [Yulin City, Shaanxi] that Care"treats life with contempt, this is government officials runamuck, a city government without justice, a citygovernment that delights in that which is vulgar, a placewhere officials all have mistresses, a city government 84% of China’s Netizens have an “openthat is shameless with greed, a government that tradesdignity for power, a government without humanity, a attitude” towards “personal privacy”government that has no limits on immorality, a online.government that goes back on its word, a governmentthat treats kindness with ingratitude, a government thatcares nothing for posterity. . . ” Source: http://www.techinasia.com/social-media-and-social-marketing-china-stats-2013/ - Unknown, Source Website Unknown 17Source: http://www.techinasia.com/netease-weibo-260-million-users-numbers/