Data Suggests that search agencies and advertisers are on track to achieve their annual budget on Baidu, and are now spending 30-40% of their budget on mobile, depending on the industry. The healthcare advertisers (~35% of Baidu?s search revenue) now allocate 50-70% of their budget to mobile, with CPC and ROI achieving or surpassing that of PCs. We believe mobile will sustainably drive Baidu?s
search revenue for the next 2-3 years
Qihoo may launch healthcare search ads in 4Q, we do not expect it to negatively impact Baidu much, as 1) it seems that Qihoo?s
budget is mostly incremental; and 2) healthcare-related traffic is shifting to mobile from PCs faster than other categories, a long-term positive to Baidu
