Qihoo Management expects that its CPC is now ~one-third of Baidu's and coverage is roughly half to two-thirds of Baidu's level. So overall per traffic monetization is roughly 15-20% of Baidu's level now. On the recent investment in the JV with Coolpad, management noted that owning a mobile device platform is important because it controls the entire ecosystem. However, the company does not expect the competition on mobile device platforms will result in heavy subsidies and significantly lower margins. On the enterprise security products, Qihoo will launch a suite of 4-5 different services, including client+cloud protection and BYOD (bring your own device) solutions.
On mobile search, monetization hasn?t started yet. Coolpad's pre-installation contract with Baidu will end in March and management believes that Qihoo should be able to get better terms than Baidu.
