Sunday, August 12, 2007

Baidu Could be Olympic Winner

Internet Tracking Center(www.weamax.com) issued a report on Aug. 10 which predicted that Baidu would be the biggest winner in the battle for Olympic related advertising.

On August 10, 2007, according to the Internet Tracking Center report, Baidu's vice president of business operations, Shen Haoyu said that Baidu will be reporting Olympics with a new media style but kept specific operational strategies secret.

We have all noticed that not long ago, Sohu just went public with it's claim of exclusive rights of sponsoring the Olympics on the web and warned other media outlet not to violate such rights. On July 19, 2007, Sina, Netease, and Tencent jointly established the Olympic coverage Union to challenge Sohu's monopoly. As many as 38 members have since joined the alliance so far.

Sohu is accused of trying to use the "rules" to monopolize all Olympic related advertisings. That behavior directly hastened the birth of China's Internet historic moment, the Olympic coverage Union, an alliance of sharing of resources and sharing of interests. The dusts are still unsettled at the moment. Baidu's action now is undoubtedly a detrimental blow to Sohu.

The joint news flow from the three major portals could post tremendous threat to Sohu's web traffic. Since each has it's own special areas, the advertisers would be willing to work with as many channels as possible. With the precision marketing technology to target specific groups of audiences, Baidu is even more attractive to advertisers.


In this Olympic battle, Baidu is likely to be the biggest winners. Baidu is a technology-based company itself, coupled with its many community based services. If fully utilize it's huge customer resources, Baidu can deliver more precisely targeted ads and create more economic value.

Whether merchants or websites, their biggest desires are relying on the Olympics to improve their brand images and influence on the public. We have reason to believe that apart from the three major portals of the Olympic Union, many businesses will choose to invest in Baidu's precision marketing.

Additionally, Baidu is headquartered in Beijing, with host advantage to the Olympic Games. As the flagship enterprise in the Zhongguancun high tech zone, Baidu is also likely to get favorable treatment from the government. Together with it's own superior strength, Baidu's Olympic action is likely to take them to a new high point financially.

These are the reasons for us to believe that in this Olympic battle on the web, Baidu will be the ultimate winner.

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