Baidu reports strong mobile ad sales, echoing Facebook

Profits are swelling again at the Chinese search giant

Baidu's financial earnings for the past five quarters.

Baidu's financial earnings for the past five quarters.

Chinese search giant, Baidu, reported a 34 per cent jump in profit for the second quarter, with mobile ad sales accounting for almost a third of revenue for the first time.

Baidu's profit reached 3.5 billion yuan ($US571 million) for the quarter, while revenue soared 59 per cent to 12 billion yuan, at the upper end of its forecast.

Mobile made up 30 per cent of revenue, which was a first for the company, CEO Robin Li said in a statement. A day earlier, Facebook said it more than doubled its profit in the second quarter, with mobile a big factor.

The results show Baidu's profit engine moving back into high gear. Last year its earnings growth slowed as the company increased spending to develop and promote new products.

Most of Baidu's revenue comes from online ads, and it's trying to squeeze more from mobile as more Chinese turn to smartphones to get online.

Baidu says it's China's top provider for mobile search, mobile mapping and app distribution. But it faces increased competition from local rivals like Alibaba Group and Qihoo 360, whose search products are growing in popularity.

Since last year, Baidu has spent a lot more on research and development and on marketing. In the quarter just ended, R&D expenses increased 85 per cent year over year, while general and administrative expenses doubled. Most of that G&A increase was for promoting mobile products, it said.

In the current quarter, Baidu expects revenue to reach as high as 13.8 billion yuan, an increase of 55 per cent from last year.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags internetbusiness issuessearch enginesfinancial resultsbaidu

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Essentials

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?