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Online video platforms in China are increasingly featuring longer ads, often lasting 15 seconds or more, and viewers cannot skip them. In contrast, YouTube allows users to skip ads after just 5 seconds, making the waiting time much shorter and more user-friendly.
YouTube originally used an ad model called "TrueView," where advertisers were only charged if the ad was watched for more than 30 seconds. This approach benefited both the platform, advertisers, and users. For advertisers, users who skipped after 5 seconds were unlikely to be their target audience. If someone chose to watch for 30 seconds, they were more likely interested in the product, making it a worthwhile investment for the advertiser.
This strategy created a positive cycle for Google. Advertisers knew their ads were shown to relevant users, leading to better performance and higher satisfaction. Compared to domestic platforms like Youku and iQiyi, this approach is far more effective and user-focused.
So why don't Chinese platforms adopt a similar model? Miami’s Cold, a product manager at Sina Weibo, analyzed the issue and identified three main reasons.
First, the business models of YouTube, Youku, and iQiyi differ significantly. Domestic video sites rely heavily on premium, licensed content. For example, when a popular show like “Yueyue Biography†is released, advertisers rush to buy spots, so there's no need for performance-based ads. On the other hand, YouTube is mainly user-generated, with vast quantities but varying quality. Charging high prices like domestic platforms would likely result in low sales, making performance ads the only viable option.
Second, technical and media backgrounds also influence the ad strategies. YouTube focuses on user-generated content, while Chinese platforms prioritize licensed content, which shapes their advertising approaches.
Third, domestic video sites aim to protect their members' interests. If ads could be skipped after 5 seconds, many users might opt for paid memberships instead, which could hurt revenue.
Despite these differences, both YouTube and Chinese platforms follow the same core advertising logic: high-quality content is sold at a premium, while long-tail traffic is sold through auction-style platforms.
For instance, YouTube launched the Google Preferred initiative in Q2 2014, bundling the top 5% of channels and pre-selling ad space annually. This is similar to how Youku and iQiyi operate. Meanwhile, Youku and Tencent Video have also introduced 5-second skippable ads for long-tail videos by integrating with DSPs and performance ad platforms.
In summary, while the ad models vary between platforms, the underlying goal remains the same: delivering value to both advertisers and users while maximizing revenue.
August 08, 2025