Baidu 3Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.

Again I think for all of the countries or markets you mentioned, China, US, Korea, mobile search is in its early stage. So we are exploring all kinds of different things to better serve our users’ needs.

“Yeah, I think the video games both on desktop and mobile in terms of time spent and video views are growing very, very quickly. Right now it’s not a very profitable business yet, but the traditional, you know, advertising industry is shifting the TV commercial budget to video and we think eventually this will become a very material part of the overall online advertising business. So our focus right now is still to continue to build the best user experience for video both on desktop and mobile. And there’s no doubt that eventually this will become a profitable business for us.”

“One trend we have seen is that mobile users in China increasingly are expecting an end-to-end solution instead of just fact finding. So users are not satisfied enough to just find information or find a link to some website on their mobile phones. They expect to be able to [be served]. For example, when a user search for a movie title, we should be able to let him or her to buy the movie ticket at a theater nearby without leaving the mobile search app. So this is the so-called end-to-end solution, and we’re doing this more and more. We see this as a trend in China.

Whereas for other markets which I’m not very familiar with, so I will just, you know, take some anecdotal things to compare. So in the US, people probably are more used to do this kind of thing through a vertical app or a map service, but in China, I think more of our users prefer to start from the Baidu search box or the Baidu search app.

Also because China’s nature as a developing market, the offline businesses, the traditional business are not very savvy in terms of internet, especially mobile. So we need to do more than the internet players in the developed markets. This also presents, you know, additional opportunity for Baidu. If we do more, we should be able to make more of this kind of services.”

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