Baidu gets mission creep

October 22, 2007

Baidu is starting up a department to compete head on with Alibaba’s Taobao in the consumer to consumer market. 

This looks suspiciously like some red meat for its shareholders rather than any promise on this.  However it could be an admission that Baidu desperately needs to monetise its traffic.  Having more than 50% of the search market is all well and good, but who’s ever seen a value per user?


Baidu: number 3 in the world

October 12, 2007

The BBC report that Baidu is now number 3 in the world, ahead of MSN.  I wonder where they would be on profitability?


Baidu expands, but Google is high end

September 28, 2007

One of the things that this blog has been saying for some time is that (1) Baidu is going to expand its market share rather than decline and (2) Google is a good bet because it has richer users.

Well the China Internet Network Information Center (CNNIC) has come out with another survey showing just this.

Baidu is up again to 74.5% of the search engine share.  Although this looks close to the peak, we have reason to believe that the market share will still increase.

However the interesting story is Google.  TradingMarkets.com report that among educated, older and more prosperous users Google is almost drawing even – which would start to explain why their return on investment tends to be higher than Baidu.

Another post by our colleagues at SEO4China shows a similar story with a reasonably strong showing by Google in tier one cities, average in tier 2 cities and nothing in tier 3 cities.  (They also pick up the importance of the high earners).  Now as the internet goes more blue collar and rural over time, this could mean that Google will lose even more market share.

The problem for Google is that they are simply not prepared to become like Microsoft in the UK or US, a good return on investment but not the market leader.  As we’ve said before, a little less chest beating and more bean counting will do Google well.


Now the analysts are writing off Google in China

September 2, 2007

Google is at last getting some good news in China, the stock market analysts are declaring the battle with Baidu to be over, with Google the loser.  Considering their track record, should I be changing my predictions of continued Baidu dominance?


Baidu eyes Japan some more

September 1, 2007

Baidu is sort of in Japan already, and is going into Japan a bit more.  I suppose its better than going for Europe.

 Japan is one of the few internet markets where Yahoo! is dominated.


Baidu Launches Video Advertising

August 27, 2007

Following Google’s launch of advertising on YouTube, Baidu is adding video advertising to its portfolio.


Google Bleed Cash in bid to catch up with Baidu

August 16, 2007

Google are going to go into China with cheque book open, and buying a couple of unannounced companies.  (Thanks to the Multilingual search blog for pointing this out).