Like Google, search + information flow is Baidu’s business model. Today on the Internet, Baidu uses this model as a cornerstone to accelerate its transition to a mobile ecosystem.

During the epidemic, Baidu embodies the value of information flow and provides people with more timely and accurate medical information and medical consulting services. In 2020, Baidu will further enhance its ability to serve users.

The mobile ecosystem is progressing smoothly, and Baidu App grows with small program users

Baidu’s mobile ecological strategy is centered on the “Baidu App”. Hundreds of house numbers, smart applets and hosting pages are the three pillars. Combining good-looking videos, Baidu Post Bar, Baidu SkyDrive and other sub-businesses, Baidu is building a mobile ecosystem.

Baidu App is Baidu’s core business, and it is also the pillar product of Sosu’s mobile strategy.

In 2019, Baidu will strengthen AI technology and apply it to the mobile ecosystem. With the support of multiple AI applications, the first user satisfaction rate of Baidu App search results has increased to 58% in the past year, and the overall stickiness continues to increase.

The application of AI technology has also brought direct growth of users. At present, Baidu App’s daily activity has exceeded 230 million, the per capita usage time has increased by 30%, and the number of services has increased by over 30%. The original content of Baijia increased by 122%, and the number of million fan authors increased by 98%. The number of monthly active users of Baidu’s smart applets also reached 500 million.

User data is rising rapidly, and the creator community in the vertical field is also increasing

There are currently 3 million creators of Baijia, and there are 800,000 media agencies and PUGC creators of good-looking videos. Baidu knowledge category has 220 million content creators, including 60,000 cooperative institutions and 50,000 experts and scholars. The open source of Baidu’s smart applet helps partners increase traffic.

“Three pillars” data upgrade will boost Baidu to B revenue

The three data “flow, content, marketing” are integrated into one, forming a “commercial integration” closed-loop model, which boosts Baidu’s revenue from corporate customers.

Why search companies are turning to mobile ecosystems

For a long time, search is Baidu’s core business, and search advertising is the main source of revenue.

In March 2011, with its search business, Baidu surpassed Tencent’s USD 44.5 billion with a market value of USD 46.07 billion. Due to its over-reliance on search services, Baidu missed opportunities for mobile Internet development.

Search services and transaction services constitute the “Baidu Core” business portfolio and are its main source of income. In 2019, the total revenue of the “Baidu Core” business was RMB 79.7 billion, with a growth rate of only 2%.

As early as 2017 to 2019, the growth rate of core business revenue showed a downward trend of fluctuations, and the search business has shown a weak trend.

In 2017, Baidu adjusted its development strategy. Baidu is actively deploying in smart areas such as artificial intelligence, smart devices, smart transportation, and enterprise cloud solutions.

In 2019, the company’s positioning changed from “the world’s largest Chinese search engine” to “China’s largest integrated Internet service company with information and knowledge as the core”, and it is also “the world’s leading artificial intelligence platform company.” Obviously, Baidu only wants to be a search engine company. Service expansion and artificial intelligence are the future strategic priorities.

Correspondingly, both Baidu’s search elements and information flow will change significantly. The three changes in Baidu search are comprehensive video, creating brand name cards, and searching for straight-chain services.

Three changes are driving the rapid growth of the distribution of rich media content,

• The number of video users increased by more than 125%, and the live broadcast grew by 62%;
• The number of interactions increased by 127%, and the number of active authors increased by 50%;
• In the past year, the volume of articles mounting applet goods and services has increased by 500%, and the distribution of applet information streams has increased by 250%.

In the second half of 2020, Baidu’s mobile ecosystem focuses on “people” and “services”

Baidu Mobile Ecology will focus on people and services. The first is to strengthen the human factor and put people first. Baidu hopes that users will see not only the content, but also the creators and service groups behind the content. On the other hand, the mobile ecosystem will continue to strengthen service capabilities, relying on smart applets to allow users to obtain one-stop services within the mobile ecosystem.

Baidu will promote “Baidu Live” more actively and focus more on delivering its own information and knowledge.

Baidu has a long way to go before moving to a mobile ecosystem.