Sina Steps Up Monetization Efforts

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- Sina ( SINA), one of the largest Internet giants in China, is planning to focus on the monetization of its online properties in the second quarter of this year.

Sina plans to monetize the Weibo microblogging service, which has around 250 million registered users, by launching new display advertising units. It also plans to monetize its gaming platform.

Check out our complete analysis of Sina here.

Sina plans to launch a new display ad system in the second quarter and will also unveil another advertising offering with precise user targeting based on user data and interests later this year. It also plans to focus on the enterprise by offering premium features for enterprise users, and monetizing them with a subscription based plan. Sina currently has a 7% market share in the Chinese display ad market.

The company also plans to launch a self-serve advertising platform for small businesses later this year, which will enable businesses to reach customers using advanced targeting methods.

In addition, it plans to incorporate ad models for mobile terminals as most microblog users access the service using their mobile devices. Sina also plans to start monetizing its online gaming platform, which is currently being used for free by game developers and users.

In other news, Baidu ( BIDU), the largest Chinese search engine, started indexing microblog updates on Sina and Tencent, and is now display tweets as search results. This could drive additional traffic to Sina's web platform, resulting in a direct increase in its display advertising revenues.

Display advertising accounts for nearly 60% of Sina's $50 Trefis price estimate while other paid services like games account for 5%. Our current Trefis price estimate for Sina stands nearly 30% below its market price.

Click here to find out how a company's products impact its stock price at Trefis.

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.