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Does Tencent's acquisition of Sogou challenge Baidu's position in the search industry?

via:博客园     time:2020/7/28 18:51:28     readed:371

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By Guo Jing

Source: Guo Jing's Internet circle (ID: guojingdequanzi)

A few days ago, it was reported that Tencent will wholly acquire Sogou. Tencent used to be the largest shareholder of Sogou, with a shareholding ratio of 38.71%. Therefore, the action of wholly-owned acquisition of Sogou by Tencent is not surprising. The key lies in the influence brought by Tencent's acquisition of Sogou. With Tencent as a big supporter, can it challenge Baidu's position in the domestic search engine industry? How to treat Tencent's acquisition of Sogou? Guo Jing's Internet circle believes that:

1. the value of search engines is declining. Once search engines were like the Internet

Peapod and app Bao have tried the game of in app search, but most of them don't cooperate with each other. The competition among major Internet companies is extremely fierce, and no one wants to contribute resources. The dream of in app search is gradually disillusioned. On July 5, 2016, Peapod was nearly 2.5% by Alibaba At a price of US $100 million, the industry is not worth the pea pod.

In addition to the information island factor, another problem is that users are becoming more and more

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Of course, it's not that today's users don't use search engines, it's

2. The cost of replacing and replacing Baidu is too high. Although some users are not satisfied with Baidu's user experience, Baidu's position in China's search engine market is still very stable. According to StatCounter, in December 2019, Baidu ranked first with 67.09% of China's search engine market share, and Sogou ranked second with 18.75% market share.

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China has nearly 904 million Internet users, in search engine options are Baidu, Sogou, Shenma search ,360 search, headline search, which search engine tool is effective, users will naturally

Yu Jun once mentioned a formula: user value = (new experience old experience) - replacement cost. After Tencent's acquisition of Sogou, can the user experience of Sogou be improved? Can tools be made more effective? These two points are crucial.

As for search engines, it's not the competition among competitors that's scared, but some users are too lazy to go

3. Baidu's core resources are hundreds of thousands of advertisers. The last time Baidu released this data was Q4 in 2018. The number of Baidu's active online marketing customers was about 529000, an increase of 15% over the same period of last year. However, the average revenue per online marketing customer decreased by 4% to 40100 yuan.

As long as advertisers are willing to put ads on Baidu, advertisers can get income from Baidu, Baidu's basic disk is very stable. The competition between Sogou and Baidu is essentially a dispute between advertisers. How big is the gap between Sogou and Baidu? Considering the impact of epidemic factors, we may as well use the data of Q4 in 2019 to compare. Baidu's network marketing revenue in the fourth quarter of 2019 is $2.98 billion, Sogou's revenue from Q4 search and search related services in 2019 is $274.6 million, and the revenue of Sogou's search business is only 9.2% of Baidu's network marketing revenue.

The dominant effect of Tencent's acquisition of Sogou is obvious, that is, the alliance of advertisers. Since Tencent integrated wechat and other advertising businesses into social advertising, Tencent's advertising revenue has risen sharply. According to the financial report, Tencent's online advertising revenue will reach 68.377 billion yuan in 2019, with a year-on-year increase of 18%. Baidu's network marketing revenue in fiscal year 2019 was 78.1 billion yuan, down 5% year on year. Although Tencent's advertising revenue growth slowed, but the distance with Baidu is getting closer.

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After the acquisition of Sogou, Tencent's online advertising business and Sogou search's advertising business can be combined. In this way, Baidu's advertising business will inevitably have an impact. Of course, it will take time to get through. It is not easy to make a smooth transition after the acquisition of Internet giants. There are also many losers, and there are also conflicts of interests among the giants.

4. Tencent search heart is not dead. Baidu created China's Internet industry after listing in 2005

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Have the heart to plant flowers, no intention to insert willow Cheng Yin. Compared with the deliberate search, WeChat search has some

In May 2017, wechat search was launched. Since then, wechat search function has gradually added music, small programs, articles, videos, encyclopedia, Q & A, commodities, news and many other contents, which are similar to the real search engine.

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Stimulated by wechat search, Tencent has regained its confidence in the search engine industry, and as Sogou's largest shareholder, the resistance to its acquisition is very small. Under the large flow pool of wechat, few companies can refuse to cooperate with it, and Wang Xiaochuan has not chosen to refuse.

In his circle of friends, he retweeted:

Sogou in their own hands and Tencent hands, the value of nature is not the same.

5. key is not search, but information flow. Baidu from 2014 began to invest a huge amount of human, material and financial resources will

On the other hand, Sogou is much slower than Baidu in its mobile process, Wang Xiaochuan once mentioned

Qimai data shows that in the past year, baidu app has been in the top 50 in the free list of app store for a long time, while Sogou app is almost out of 200.

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In order to focus on mobile phone Baidu app, baidu even gave up Baidu browser strategically. In the development of Baidu app, baidu also began to layout information flow business.

Financial results show that as of March 2020, the number of content creators exceeded 3 million, an increase of 44% over the same period last year. With a large number of content contributors, Baidu has the opportunity to form a more efficient distribution capacity. Baidu outside the information flow business has gradually begun to spread to vertical areas, such as Baidu Health, Baidu Auto

Information flow has become the focus of Baidu in addition to search. The key to Tencent's acquisition of Sogou is not search engine, but information flow.

According to the data released by Tencent, the number of daily active users of multi terminal de duplication reached 240 million in March, and the average daily consumption of content reached 9.6 billion.

Although Sogou app didn't do it, it did well through QQ browser. Qimai data shows that in the past year, it has been in the free list of app store for a long time within 50. Although it is far away from Baidu app, it is not as big as Sogou and Baidu.

After buying Sogou, Tencent can push with Baidu

The trees are cool. For Sogou, the acquisition of Tencent is certainly a blessing, but for internal employees, there will inevitably be overlap of relevant business lines and be

In the era of PC, news portals and search engines have become popular. However, in the era of mobile Internet, everything has changed. In the past 30 years, the East and the West have changed, and no one can predict the future.

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