Is Baidu the new Google?

Baidu is the largest search engine in China. It’s their answer to Google with a 75% market share in China (63% Global share) compared to Google’s dwindling 20% (27% Global share). It is China’s first company to be included in the NASDAQ 100 with 2010 showing revenues of $1.2bn, profits totalling $534m and a market cap of $40bn (Google’s is 5 times that but impressive stuff all the same).

http://www.wikinvest.com/stock/Baidu.com_(BIDU)

Is it better than Google? Will it become the biggest search engine in the world? Will it capture any of Google’s search revenue (notably the ONLY cash generator in the Google stable).

Under the bonnet

Look familiar?

The direct translation of Baidu is ‘hundreds of times’ which is said to describe the never ending service that it provides, and that you will get great service ‘hundreds of times’. Ok, doesn’t translate so well but hey, we’re not Chinese.

Baidu Growth

This is the impressive bit. The company’s profits more than doubled for the last quarter in 2010. This puts their net profits 171% higher than the same period in 2009. Total revenue for the year increased by 78% to $1.2 billion. So, time to take note huh.

Google Baidu Differences

The Differences: Well to start, it’s in Chinese (Simplified Han) which to me is ‘wow, what the hell is that and where do I start’. Under Chinese law you can download mp3’s completely legally (http://bit.ly/axWiQW). Other clever apps and services increase its stickiness, with e-commerce and social media being two massive growth areas Baidu is investing.

“Social search products represent a significant portion of our total traffic,” Baidu CEO Robin Li said. More here

Is Baidu better? Well no is the short answer. In blind tests Google proved better as people find what they want quicker:

Motorola will add the first search and map widgets from Bing.com to its Android handsets in China in the next few weeks. It changed the default search from Google to Baidu months ago. However, people spend longer on Baidu which suggests it’s not as efficient as Google:

Mobile Search

Worldwide, mobile services are huge business and 2011 will continue to grow exponentially. China has approximately 338m internet users but an estimated 600m residents have mobile phones. So we’re talking $billions in potential mobile revenue. As smartphones spread in popularity, Baidu and Google are locking horns for their share. Since September 2009, Google has been no.1 for revenue generation in the global mobile internet market. In China it is tied with Baidu.

Can Facebook succeed where Google failed?

Google pulled out (Kicked?) early 2010 and now run operations from Hong Kong. Mark Zuckerberg the founder of Facebook, visited China late last year and his first stop was Baidu which is understandable but also raised some eyebrows. Russia and China are vast markets Facebook has yet to conquer. Like many other online services, Facebook is blocked in China. Does Zuckerberg have a plan to overcome the great firewall of China, and can Baidu help him do that?

To Conclude

So far the vast Chinese market has proved to be an unsolvable riddle for Western companies. The Chinese economy will no doubt continue to grow and although Google’s perch has been nobbled, 96% of visitors to baidu.com are Chinese, loving the local service. If Facebook manages to convince China to open the doors to its 1.3bn users it will be a huge win for the site and hopefully other platforms including the re-introduction of Google but it’s a long shot. Currently there doesn’t appear to be any real threat from Baidu as a global offering so if you want to invest in a ‘Search+’ business, continue to invest in Google. However, does Google want, nay need, a piece of the Chinese pie? Damn right, especially the mobile market, but will they get it? We don’t think so.

[It must be noted that Google isn’t officially ‘in’ China and hasn’t been since March 2010. It moved operations to Hong Kong which weirdly sits outside of Chinese law in many respects.Read more .]

Tech Trends To Watch In 2011…

2011 Tech Predictions:

Incidents of (state sponsored) tech terrorism will rise (as will inflation and interest rates):

Microsoft will continue to flounder everywhere (Sell shares soon!) except with the office staples such as Windows and Office (Office 2010 is rather good). Apple will continue to conquer & niche the covetable product arena (Watch out for the new iPad Spring/Summer 2011):

Read more >>

How Did We Use The Internet In 2010?

These distilled nuggets are c/o LondonCharlotte

Thank you to eMarketer.

Dan

Mobile Internet Usage 2010

2010 – A mobile year in review.

Mobile seems to be the future of the tech world at the moment. HUGE growth.

Great video if you have time…

Thanks to mobilefuture.org

Will Android Take Over The Mobile World in 2011?

Android has been an absolute smash in 2010, however, delve a little deeper and you’ll see it’s only in the US?

Here is the Android Infographic that breaks down who is kicking ass in mobile phone land. I’m not convinced their predictions for 2014 are right but we will see.

Dan

www.theengineroom.co.uk

IT Support for London

International Mobile Behaviour 2010. How We Compare Using Our Cell Phones

Here is a mobile phone usage report from late 2010 looking at how we use our phones, what we connect to and which brands we consider mobile worthy.

Thanks to www.comscore.com

Dan

www.theengineroom.co.uk

How Lazy Are You At Work?

Whether you work in IT Support, you’re an Architect or a Lawyer, here is a look at how lazy we can be at work!

To PC or not to PC, Mac is the question…

Watch out Spotify!

Google & Apple are hot to take on Spotify, the subscription based music delivery service.

Hear a track you don’t know, Shazam it. Spotify it. Got it. Simple. And all for a tenner a month! (Unless you’re a Beatles fan, and a few others who haven’t signed up). I’m still desperate for a ‘Genius’ style button so I don’t have to make playlists, but apart from that, Spotify just works. It’s great.

So what’s the problem?

For us, the consumer there isn’t one. It’s happy days. We get great music, easily, quickly and cheaply, but Spotify is soon to become the victim.

Apple has been waiting in the wings, watching Spotify prove the business model. Knowing that if iTunes profits were to fall, or if Spotify were a hit (uhuh), they *could* simply turn on a subscription based version. Plus, to nail coffins – This side of Xmas, Google are releasing their own cloud based music service.

So what happens to Spotify?

It will eventually sink I imagine. Unless they move into movies, offer a better service or diversify in some other way. They do have the heads up but Apple and Google have the infrastructure, the licensing agreements and a HUGE international customer base.

Sign up to alternatives now and see what you think. Also keep your eye on Apple TV & AirPlay (especially how the latter could be used in non-Apple products. V interesting.)

PS Watch Facebook Places kill Foursquare & Gowalla location based social media platforms. A sad .com fact of life. Sometimes the 15 minutes is cut a little short.

Dan

www.theengineroom.co.uk

Making sure IT doesn’t start with S and H

Cell Phone Obsessed? [Infographic]

Via: Cell Phones