Almost 75 percent of digital advertising comes from search and display in 皇冠体育app.
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The investment is a financially wise decision for Alibaba.
"Through building online retail platforms, Alibaba serves as a commodity trader. In the same way, it can become a digital content trader. The investment fits naturally with Alibaba's business model," said Light.
According to 皇冠体育appVision Media's official website, the company participated in the production and distribution of some very well known movies and television dra in 皇冠体育app.
In addition, the company co-manages the Times, the biggest morning newspaper in the Chinese capital, and has been jointly developing a mobile television business with People.cn, an information interaction online platform created by People's Daily, a major State-own media company in 皇冠体育app.
"When a company grows to a certain size, it is only a matter of time before they look to own media channels to gain a certain sway in public opinion," said Tian Hou, chief analyst with T.H. Capital LLC, an independent research and investment advisory firm.
She added that getting involved in media content production is also in line with Alibaba's mobile strategy. The company announced earlier this year it would enter the mobile gaming industry. 皇冠体育appVision media also produces mobile games.