Baidu Adjusts Chinese Revenue Expectations
Saturday, December 13th, 2008
There has been considerable interest on the impact of the economy, the medical ads issue and the changes in ad layout on Chinese Internet search engine Baidu.com (BIDU). On the 11th December, the company released a press release that adjusted its revenue expectation for the fourth quarter of 2008 to between CNY890 million and CNY900 million, decreasing CNY100 million compared with its previous estimate.
Baidu previously predicted CNY1.025 billion to CNY1.055 billion revenue in the same period.
The company says the reasons for the adjustment are relating to several factors. First, the economic slowdown in China is having a greater than expected impact on online marketing particularly in machinery and franchising; second, Baidu recently removed the paid search listings of customers in the medical and pharmaceutical sectors without licenses on file with Baidu; and third, after a thorough inspection of its customer base, the company removed a number of questionable paid search listings outside of the medical and pharmaceutical sectors. The company noted that a portion of its customers in the medical and pharmaceutical sectors have returned to its paid search listings following the submission of required licenses.Robin Li, Baidu’s chairman and chief executive officer said,” I am confident that Baidu will enhance our market position as we continue to evolve our business model in- line with the rapidly changing dynamics of our market. Going forward, we will continue to focus on improvements in operations, product offerings, and execution.”
Currently, the company is testing a new on-line marketing system to enhance monetization which is expected to improve customer ROI as well as user experience. In addition, Baidu is in the process of developing a new sales support system which is designed to improve sales productivity as well as customer service.
It appears that the Chinese Search giant has has a rough few months with their imagine getting a tarnish. I say that regardless of the poor press and seemingly poor internal management systems Baidu still maintains a strong hold on Search in China and has proven that their is a focus and intent to try new and innovative products/services. I would say now the risk is timing and execution….
Be interested in any ideas and views from you.








