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One of the most spectacular success stories in the Asian web market is currently being written by Nico Nico Douga (“smiling videos”), a video sharing platform from Japan.

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Niwango also sells ad space, accounting for around $300,000 monthly.

Sales from affiliate links generate approximately $820,000 per month (official figures for February 2008).

The site is estimated to carry one twelfth of Internet traffic in Japan.

Google Trends for Websites doesn’t break out You Tube properties, but it does show Nico Nico to be attracting about as many visitors as Veoh does worldwide (about 1.4 million on a basis, see chart below).

That adds up to $2.1 million a month, or a $25 million annualized revenue run-rate. However, the mobile version of Nico Nico is still completely free of ads.