China Search Engine Market Share - August 2014

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 |  Includes: BIDU, QIHU, SOHU
by: China Stock Research

Data from CNZZ showed that Baidu (NASDAQ:BIDU) continued to lose ground to competitors Qihoo 360 Technology (NYSE:QIHU) and Sogou (a joint effort between Tencent and Sohu (SOHU)). The fact that Qihoo is gaining share isn't that much of a surprise when considering media reports released just before Qihoo's Q2 numbers, which highlighted it breaking the 30% share barrier (measured on a daily basis).

Sogou's position seems to slowly becoming relegated toward the bottom of the pile. After breaking into a meaningful share last year, it seems to have hit a plateau in recent months (hovering around the 12% range). According to the Q2 call, Sogou's tie-up with Tencent was proceeding well, however, after nearly a year after the deal, investors looking for results would be forgiven for becoming impatient.

One takeaway from the Q2 conference calls was the increased focus on the mobile space and how companies were redirecting resources to capture a share of that growing opportunity. For investors, this likely means near-term pressure on margins as companies shell out advertising and promotion expenses to capture users, which could be reflected in share prices.

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14
Source: CNZZ.com
Baidu 61.1% 60.5% 61.0% 60.3% 60.5% 59.6% 58.3% 56.3%
Qihoo 360 24.2% 25.0% 25.1% 26.0% 25.2% 26.1% 27.5% 29.0%
New Sogou 11.9% 11.9% 11.3% 11.7% 12.4% 12.9% 13.0% 12.8%
Google 2% 1% 1% 1% 1% 0.4% 0.3% 0.3%
Bing 1% 1% 1% 1% 1% 0.7% 0.8% 0.7%
Yahoo 0% 0% 0% 0% 0% 0.0% 0.0% 0.0%
Other 0% 0% 0% 0% 0% 0.0% 0.0% 0.8%
Note: Figures may vary from source due to rounding
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Disclosure: None.