Ali Wangwang Begin To Enter China’s Internet Advertising Market

Alisoft, the software subsidiary of the Chinese B2B e-commerce group Alibaba, has announced that its instant messaging platform, Ali Wangwang, will formally enter China’s Internet advertising market.

This is the first time for Ali Wangwang to enter the Internet advertising business since its integration of the instant messaging brands of “Mao Yi Tong” and “Taobao Wangwang”. According to the latest operating statistics provided by Alisoft, by the end of May 2009, Ali Wangwang had gained users of over 130 million, which was only second to Tencent’s QQ. Its monthly active users have reached 70 million, providing a large customer base for its new digital advertising business in China.

A representative from Alisoft told local media that Alisoft always rejected placing advertisements in the past and it is not because they did not need money. Instead, they are prudent about Internet advertising and consider users’ experiences more important. Now the company has accumulated a number of users and it has decided to sell advertisements.

In regards to the rumor that Ali Wangwang wants to establish its profit model through advertising, the representative said Alisoft’s sister company Taobao.com realized a balance between income and expenditures with the advertising profit model in 2008. However, Ali Wangwang does not have the profit pressure.