Baidu Controls 72% of Chinese Search Market

Baidu Search MarketBaidu’s recent development in search maintains solid growth. According to iResearch, PC + Mobile search captured 72% of the overall market. Mobile search underpins the growth of overall search with 160mn DAU (daily active users) in 1Q vs. 130mn two quarters ago. New functions have been integrated into the mobile search home page to provide users a more seamless experience. Customized vertical results on healthcare, eCommerce and education are now available on both PC and mobile. In terms of monetization, Baidu introduced a new bidding system that can target users in specific cities to generate higher ROI. Management expects mobile revenue to surpass PC later this year.

Baidu will continue its investment in five strategic areas –search, mobile and cloud, LBS, consumer product and international. Its development has been well paid off thus far. In terms of other areas, Baidu’s app distribution capability recorded a significant improvement after its integration with 91 Wireless. As in December 2013, Baidu achieved 100mn app downloads on a daily basis.

Mobile mapping plays an important role in a range of location-based services, thus drawing the attention of leading internet players. Baidu revealed in its latest conference call that the MAU of its mapping app, Baidu Map, had reached 190m. The transaction volume (e.g. hotel booking, group buying) on its map platform saw strong growth (+80% QoQ). The company also intends to incorporate its newly launched payment service, Baidu Wallet, into Baidu Map.

Baidu Cloud accumulated 160mn registered users and its location-based service received an MAU of 190mn, a 30% increase q-q. LBS-related transactions including hotel and movie ticket booking services achieved an 80% growth q-q. For group-buying, Baidu has rebranded Nuomi and witnessed a solid growth throughout the integration process. Baidu will continue to leverage its mass traffic resources and strong sales forces to assist Nuomi’s scale expansion. In terms of consumer product, Baidu combined Duoku game with 91 Wireless and also introduced Zongheng, one of the biggest online literature channels onto the platform.

As a key strategic vertical for Baidu, iQiyi continued its growth momentum in 1Q14 and led the online video market as the No.1 player in terms of monthly and daily user in PC and No.1 in terms of monthly time spent on both PC and mobile.

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