The company is actively expanding into non-search areas; could depress overall profit margins in the near term.
E-commerce competitor Alibaba offers pay-for-performance search on products listed on its popular C2C site Taobao and B2C site Tmall, which are popular options among small-sized businesses in China. Difficult to compete against.
The low monetization in mobile search will take time before Baidu’s heavy investments reach fruition. Time is risk but Chinese are patient.
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