Baidu Q4 financial report exceeds Wall Street expectations. How can Baidu Alliance's mobile business ecosystem help? ...

Text/Li Donglou (micro signal: lidonglou) On February 26th, Baidu released 20 15 fourth quarter financial report and annual financial report. The financial report shows that Baidu's total revenue in the fourth quarter was 65.438+08.699 billion yuan (about 2.887 billion US dollars), an increase of 336.5438+0% over the same period of last year, and its performance greatly exceeded Wall Street's expectations. Financial institutions such as Credit Suisse and Morgan Stanley all gave Baidu favorable or overweight comments. After the financial report was released, the capital market reacted quickly, and Baidu's share price rose by 1 1.24%. All these indicate that Baidu is regaining the trust of Wall Street, and Li Yanhong's persistence is being rewarded. Judging from the financial reports of the past four quarters, almost all of Baidu's income comes from online advertising marketing. Baidu's advertising marketing, as the largest mobile advertising marketing ecology in China, on the one hand integrates 96.8% of the resources of the top 500 Internet display advertising enterprises in China, on the other hand, it is favored by more advertisers because of its huge traffic resources. Then, we can't help asking, what did Baidu do right after never being optimistic and exceeding Wall Street's expectations? As a mobile pioneer, what has Baidu Alliance done? Mobile revenue soared, and Baidu Alliance highlighted the service ability of connecting traffic owners and advertisers. First of all, in the annual financial report of 20 15, the most striking thing is the continuous growth of mobile revenue. The total revenue in fiscal year 20 15 was 66.382 billion yuan (about 10248 million US dollars), up 35.3% year-on-year; Mobile revenue accounted for 53% of total revenue, compared with 37% in the same period of last fiscal year. In fact, a large part of the growth of Baidu's mobile revenue is attributed to the continuous improvement of Baidu's advertising and marketing capabilities. In this process, it is very important to accurately understand the needs of media parties, advertisers and users and standardize the delivery process. In 20 15, the advertising process of Baidu Business Ecology in programmatic buying was optimized on a large scale, which also stimulated customers' bidding and improved the liquidity of local traffic by 20%, even reaching 90% at the highest. As can be seen from the financial report, there was a revenue growth of 6 billion from 654.38+02.725 billion in the first quarter to 654.38+08.699 billion in the fourth quarter. Baidu Alliance, with 800,000 PC traffic owners and 50,000 APP traffic owners, has played a prominent role in helping media owners realize high-quality realization and stimulating advertisers to bid. In addition, on the WAP side of the mobile webpage with great potential, Baidu Alliance also launched relevant policy support last year to help media owners seamlessly access Baidu Mobile's new ecological alliance system. At the same time, it also means that Baidu has basically successfully completed the transformation from PC to mobile, especially the extensive users of mobile phone Baidu, Baidu map, Baidu glutinous rice and other products and the growing transaction volume, which has transformed Baidu into a life service provider. On the way, I gained more confidence. Baidu Alliance has built an ecosystem, and Baidu's industry influence has been greatly enhanced. Secondly, while the two Internet giants, Alibaba and Tencent, are building an ecosystem around their core businesses, Baidu's progress in 20 15 is the most obvious. In particular, through Baidu Alliance as a link, it helps startups with its own advantages in terms of traffic and entrance, technology accumulation and capital resources, and accelerates the construction of its own ecosystem. On the one hand, Baidu tried to help and support many partners through financial investment, and grew rapidly until it went public. At the 20 15 Baidu Alliance Summit, Baidu announced that it would invest 500 million yuan in alliance loans,1200 million yuan in credit loans and1000 million dollars to set up an Internet eco-fund alliance to provide financial support for mobile entrepreneurs from the perspectives of micro-loans and financing, so as to relieve the worries of mobile Internet innovation projects. Li Yanhong also publicly announced Baidu's "three noes policy" for future partners. First, each company has its own personality and hopes that its partners will get the maximum value. Second, there is no division of cooperation camps, and Ali, Tencent and Xiaomi are all partners; Third, we are not afraid of partners washing users. We should do 3600 lines with our partners and let the power of the Internet drive traditional industries. This is actually the most direct embodiment of Baidu's attitude of welcoming all partners to open up and its determination to create a big ecology in the field of life services. On the other hand, Baidu has changed its original investment M&A strategy, from the original huge acquisition to the present small-scale decentralized business layout, from the original strategic annexation to only being a controlling shareholder, and is evolving into a business layout focusing on building ecology. The financial report shows that in 20 15 years, Baidu invested in dozens of life service-related startups, but did not control any of them, and also gave Baidu support in terms of traffic resources. At the same time, in order to speed up the construction of Baidu's business ecosystem, Baidu also quietly launched the "Aircraft Carrier Plan" on 20 15, separating the high-quality projects hatched internally and financing them separately in the capital market, thus revitalizing its potential business, reducing the financial burden, and introducing many shareholders to become Baidu's partners, further strengthening Baidu's industry position. For example, in the second quarter of 20 15, Baidu spun off a star project, an internally hatched Baidu takeaway, and the previously acquired 9 1 desktop, trying to introduce external investors. This series of splitting projects not only accelerated the internal ecological construction of Baidu, but also played a role in releasing high-quality assets and stimulating the entrepreneurial passion of Baidu employees. These efforts are clearly reflected in Baidu Q4 financial report. At the beginning of this year, Baidu announced the establishment of Baidu Changjiang School in cooperation with cheung kong graduate school of business. Through cheung kong graduate school of business's alumni circle and entrepreneurial resources, as well as the ecological open resources of Baidu Alliance, building a mobile entrepreneurial ecosystem also gives people many prospects. Internally and diplomatically, Baidu Alliance helps Baidu brand continue to penetrate. In the past year, Baidu's activities at home and abroad have continued. On the one hand, I hope to spread Baidu's corporate philosophy of "connecting people and services" to users, partners and even investors. On the other hand, I hope to gain recognition from more partners and domestic and foreign investors, which also makes Baidu's influence at home and abroad constantly improve. In China, Baidu mainly aims at many mobile internet entrepreneurs, hoping to support more partners to succeed and expand their influence. In addition to proposing the "three noes" policy with partners at the annual Baidu Alliance Summit, Baidu Alliance promised to provide entrepreneurs with three engines of technology, capital and business at the world internet conference held at the end of 20 15 to help them innovate in all directions. Among Baidu's partners, there are already many Internet companies listed overseas, Hong Kong and China, such as 58 Tongcheng and Cheetah Mobile listed overseas, LeTV and Storm Audio and Video listed on A-share, Shengtian Network listed on Shenzhen Stock Exchange, Optical Audio Network listed on New Third Board, Tianya Network, Tiexue Military Industry and many other Internet companies. In addition, Baidu has been striving for internationalization in recent years. On the one hand, it has established overseas business and R&D center to expand overseas markets. At present, it has set up branches and offices in overseas markets such as Japan, Egypt, Thailand, Brazil, Indonesia, India and the United States. On the other hand, with the help of the technical advantages and content distribution capabilities of search engines, we will reach strategic cooperation with Internet companies, realize technology sharing and win-win business, and enhance international influence. For example, at the end of last year, Baidu and Internet giant Amazon reached a strategic cooperative relationship, and the bond of cooperation was Baidu Alliance. The financial report shows that through the ecological integration of the mobile product matrix and the global mobile advertising platform DUAdPlatform, Baidu Internationalization achieved more than 600% revenue growth in the second half of 20 15 compared with the first half. Generally speaking, according to the fourth quarter financial report of 20 15, Baidu's continuous investment in life service, the continuous growth of mobile network marketing revenue and its efforts to build Baidu's mobile advertising ecosystem with Baidu Alliance as a link have evolved into real profit growth. After three quarters of low growth in net profit, Baidu broke out in the fourth quarter with a net profit of 24.7.1200 million yuan.