Monday, July 23, 2012

Baidu profits jump as online advertising boom continues

Baidu's chairman introduces the company's search engine

The firm reported a net profit of 2.8bn yuan ($436m; £282m) in the three months to the end of June.

Its advertising revenue rose almost 60% during the period to 5.5bn yuan.

Baidu has almost an 80% share of China's online search market, making it an attractive option for advertisers.

Analysts said that being the biggest player in the sector had given Baidu more bargaining power with firms looking to advertise on its portal.

"For Baidu, because of their dominant position in search, they're able to extract more pricing power in terms of advertising keywords," said Andy Yeung, an analyst with Oppenheimer & Co.



Source & Image : BBC

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