Baidu Inc (ADR) (NASDAQ:BIDU), Chinese web services company, has launched a new service that will help retailers to advertise on mobile devices for all the users of Baidu search engine, Reuters reported. This new feature will increase Baidu Inc (ADR) (NASDAQ:BIDU)’s revenues and will give it a huge boost in the market, as according to the statistics issued by the Chinese government, the majority of users in China access internet from their smartphones and mobile devices, rather than the PC.
Baidu Inc (ADR) (NASDAQ:BIDU) recently announced a 58% increase in its revenue for the second quarter to around $1.9 billion. Its mobile ads business contributed 30% to its overall revenue, which is less as compared to its competitors like Tencent Holdings Ltd.
The new location-based ads service provides a sophisticated tool-kit for advertisers, merchants and developers to craft online-to-offline (O2O) applications in order to target users who are using internet from nearby shops, restaurants and other places.
According to the source, Baidu Inc (ADR) (NASDAQ:BIDU) has recently invested $10 million to acquire a minority stake in IndoorAtlas, a company that provides a special technology that allows tracking of the location of smartphone users inside buildings. This technology will help Baidu to revamp and refine its new location-based ads service.
With the launch of new ads services, Baidu Inc (ADR) (NASDAQ:BIDU) is expected to give a tough competition to its prime rivals like Alibaba Group Holding Ltd, China’s biggest e-commerce company, and Tencent. At the launch of Baidu Inc (ADR) (NASDAQ:BIDU) ‘s Connect service, CEO of the company, Robin Li, said that he is very optimistic about the new service.
“In the mobile era consumer behavior is changing, and the mobile Internet has given us new businesses and opportunities,” Li was quoted as saying.
Baidu Inc (ADR) (NASDAQ:BIDU) recently announced a, $813 million deal with Beijing-based Dalian Wanda Group and Tencent, after which Baidu will be providing O2O services inside Wanda’s commercial properties. Baidu Inc (ADR) (NASDAQ:BIDU) has also announced a new wearable device called Baidu Eye, which scans any object using the camera and which can sync with smartphones.
Stephen Mandel‘s Lone Pine Capital is one of the biggest shareholders of Baidu, having approximately 8.9 million shares of the company.
Disclosure: None
Suggested Articles:
Most Expensive Currency In the World
