2020 is an unprecedented challenge to online advertising and innovative business.
Editor’s note: This article comes from the WeChat public account ” Science and Technology said “(ID: kejishuo) , author: old iron 007.
Baidu now seems to be stuck in an awkward situation of “wrestling a million people”.
After the market value was surpassed by the rising stars such as Meituan, Jingdong, Pinduoduo, etc., “Baidu is old” has become a cyclical topic, and a round of discussion has been launched from time to time.
What is wrong with Baidu, and is it possible to revive the glory? We have been thinking about these.
Combining multi-quarter financial reports, we will focus on the research in this article: First, sort out the development of Baidu ’s core business income in the past more than a year, and whether the financial statements, especially the income statement, can be improved in the short term; second, use AI, Cloud computing focuses on the potential of non-advertising businesses.
Baidu advertising is now bottom line
Baidu started with a search business and its business model is mainly advertising.
In the PC era, Baidu has become the most important traffic distribution platform in China, and it has been in the limelight for a while (especially after Google withdrew), but Baidu itself has always been trying to improve the efficiency of this single model of “selling traffic.”
In the past ten years, Baidu has carried out perseverance and repeated business model breakthrough plans, such as investment-driven mid-page plans, investing in a large number of vertical fine-grained websites (such as iQiyi, where to go, etc.) ), And also carried out C2C e-commerce exploration, launch ah, and then O2O to build a heavy capital, and the recent hot AI strategy.
In terms of operations, when Baidu holds massive traffic, invests in vertical websites, and uses investment to leverage investment income, this is certainly a more efficient business than “selling traffic”.