Sunday, February 24, 2008

New iResearch report: search mkt at 5.16 billion Yuan

Search expected to be 30% of total online ad revenue.
Assuming Baidu maintains its market share of 60.9%,
that gets to be 3.142 billion Yuan. Which is about 440
million dollars, at today's rate. About 2 to 3% higher
than the current average analyst estimate. The Yuan
can safely be expected to appreciate 5 to 10% on top
of this.

Shanghai daily article


baylesworth said...

With online branded advertising reaching 4.86 billion yuan and projected to hit 23.7 billion by 2011 can anyone provide any color on what Baidu's revenue share currently is and what it is projected to be? Since SME's pay Baidu in advance for advertising this revenue wont show up as AR. I heard from the Q4 conference call that larger companies like the branded advertising program. Per the CC the AR(Accounts Receiveable) line on balance sheet is from the branding ads program by these large companies. AR has gone up roughly 30% sequentially to $8.8 million from Q3 $6.9 million. Therefore shouldn't a significantly amount of future revenue come from online brand advertising not just search engine advertising? It seems to me this could provide sizeable upward revenue projections vs analysts current '09 estimates. Ajoykt any thoughts?

ajoykt said...

Yes, brand advertising could provide
upside, since Baidu has significant
amounts of non-search traffic (more
than half their total traffic, in
fact). US companies seem to have a
hard time monetizing brand
advertising (both Yahoo and Google
struggle with it) which is why I
suspect the market focuses on search
share so closely.

baylesworth said...

Thanks. In the U.S. if Google and Yahoo dont get the majority of brand advertising revenue then who does? Is it just online SME's or large etailers?