Market player highlights
Baidu (BIDU) is the most popular search engine in China, followed by Qihoo 360 (QIHU). The KraneShares CSI China Internet ETF (KWEB) holds 8.10% in BIDU. From the chart below, we can see Baidu’s ad revenue surpassed all other players. Baidu shows a growth of 30.31% over the previous quarter, followed by Twitter’s (TWTR) 16.43% growth and Facebook’s (FB) 15.38% growth.
Google (GOOG) is blocked in mainland China due to government censorship issues, and the Internet giant saw its lowest growth of 3.32%. Google holds around 60% of the market share in ad revenue. Google generates its ad revenue from a variety of sources, such as aggregate paid clicks, which showed an increase of 7% over 2Q14. Revenues from paid clicks increased by 10% over the same period the previous year. Google also uses AdSense and AdWords to pull traffic toward its web portal.
Facebook’s (FB) mobile advertising revenue consists of 76% of its total ad revenue. Facebook shows a robust ability to retain its daily active users (or DAU), which showed an increase of 17% on a year-over-year basis. Facebook had 1.49 billion monthly active users (or MAU), a 13% year-over-year increase.