Baidu Q3 online promotion revenue down or re registered advertisers

this year, Baidu released third quarter earnings. Although revenue growth fell more obvious, but its net profit growth year on year, after the first half, Baidu net profit fell for the two consecutive quarter. At the same time, it is worth noting that the first camp Baidu closed source, online promotion revenue appeared negative growth for the first time in recent years, or with Robin Li in the Wei Zexi incident said at least 2 billion cut.



report shows that the total revenue of Baidu in the third quarter of 18 billion 253 million yuan ($2 billion 737 million), down 0.7% over last year, after excluding 2015 held where the impact of an increase of 6.7%; the third quarter net profit of 3 billion 102 million yuan ($465 million 200 thousand), growth of 9.2% over the same period last year.

in the case of declining revenue growth, net profit has returned to growth. Bloomberg analysts believe that the main reason is because Baidu has reduced subsidies in the takeaway and other O2O services. This decline in spending offset the slowdown in advertising growth, which is mainly due to the Chinese government to rectify the current advertising, as well as competition from Ali and Tencent related business. In September this year, the U.S. market research firm eMarketer said Alibaba this year is expected to exceed Baidu, China’s number one player in the digital advertising market.


online promotion revenue and customer volume fell

in the specific business, online promotion business of Baidu in the third quarter of the revenue and customer volume both fell, income is 16 billion 490 million yuan ($2 billion 473 million), down 6.7%; at the same time, the amount of active customers online only about 520 thousand, fell 15.90%, which is equivalent to the first quarter of last year’s level. Baidu’s online promotion service since its birth, has been the first to Baidu’s source of revenue, revenue and customer growth is the constant rise, now suffered so much decline, not unrelated with Baidu’s own "cleaning" action.


Wei Zexi after the incident, Baidu announced to clean medical advertisements, remove disease search sticky promotion. Robin Li also said that a quarter of Baidu Cut 2 billion to deal with Wei Zexi event. A little bit of it, if you assume that the three quarter of Baidu’s original online advertising revenue with the growth rate in the last quarter of the same, really just about less than about 2 billion…… Moreover, Baidu CEO Robin Li in the company’s three quarter results conference call also said that the second quarter of this year will complete the re registration of advertisers, and said the re registration will have the biggest negative impact on the performance of the fourth quarter of fourth.



have suffered this year to sell it, Wei Zexi. Hemophilia event and event night gambling promotion event, Baidu in the public reputation fell to the freezing point.

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