Robin Li thinks that Baidu is going to be bigger than Google. What is it with size over specialism?
Google China suffers over this because it ignores the fact that it has the better converting ads (partly because of less click fraud, partly better ad serving technology) and aims to become the biggest. Are they seriously claiming that they can start offering free MP3s of current bands? Thought not.
Baidu has succesfully grabbed the Chinese market, and held this off from Google. It’s even making a decent fist of monetising it. However China makes up a sixth of the world’s population. In most of the other five sixths Google rules. Baidu is making a serious attempt to expand into Japan, but that’s so far the only large foreign market where they have made any serious effort.
China is a fast expanding but underdeveloped market, and Baidu could still maintain a stella rate of growth by concentrating on monetising the Chinese internet market.