Chinese search engine giant Baidu has announced USD 2.89 billion in total revenue for Q4 2015, a 33% increase from the same period last year. A trend towards mobile continued as Baidu’s mobile revenue increased to 56% of total revenues for the fourth quarter of 2015 compared to 42% for the corresponding period in 2014.
Despite their main revenue stream being online marketing (online marketing revenue for the company in Q4 was USD 2.72 billion, representing a 27.2% increase from the same quarter in 2014), Baidu also saw a big spike in the value of their Internet Plus transaction services that connect users with Baidu Nuomi, a group buying app, Baidu Waimai, a food delivery app, Baidu Wallet and Baidu Connect, a location-based O2O platform. This segment of Baidu’s business saw a year-over-year increase of 397% in gross value in Q4.
Although this doesn’t translate into revenue for the company, it’s clear that Baidu is looking to O2O as a segment for growth.
“Services and domestic consumption-related verticals are supported by the government’s Internet Plus initiative and hold tremendous potential,” Robin Li, chairman and CEO of Baidu said in a press release. He cited what he called “Baidu’s vital role” in connecting users with merchants in sectors like local services and retail/e-commerce.