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Qihoo 360 Technology Is a Smart Way to Profit From the Booming Chinese Internet Industry

August 17, 2014 | About:
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Chinese Internet organization Qihoo 360 Technology (QIHU) has beaten its adversary Baidu (BIDU) and the more extensive market in terms of stock value gratefulness so far this year. Qihoo is up in the early teens, and in the event that its first-quarter results are any evidence, the organization looks set for explosive development.

Development focused strategies

Qihoo is embraced various moves to fight Baidu. Doubtlessly, its efforts are resulting in a solid growth, which is expected to sustain going forward.

The first quarter results were without a doubt decent and reflected how the organization is progressing. Qihoo continues to bolster its position in mobile security and apps. As indicated by Statistics, the user base for 360 Mobile Safe has multiplied in the past one year. Also, the organization has dispatched a fresh out of the box new mobile browser, alongside another versatile search application, which will strengthen its position in mobile end market.

In spite of extreme rivalry, Qihoo's 360 Mobile Assistant is drawing in users at a fast pace. As indicated by administration, "Versatile adaptation is a critical piece of all our general business strategy and expects this pattern to keep on incorporating with the nearing quarters." Additionally, the organization is making immense strides in the search market. As a matter of truth, in just two years, Qihoo has taken 25% of the search traffic in China. Also, Qihoo is seeing solid development in its gaming segment, which continues to pull in gaming developers and users.

Advertising development

Advertising is one of the key growth drivers of the organization. Indeed, its advertising revenue was up 121% year-over-year. This performance was on the back of strong search adaptation. To propel its advertising business, Qihoo declared the acquisition of MediaV, a precision advertising delivery platform and is pretty well known in China and they are the leader in this particular market in China.

MediaV provides cloud-based analytics services that permit its clients to deliver advertising to focused on audiences. As per management, “help us to link the desirable advertisers with the desirable kind of users at a more precise way and increase overall advertising business efficiency or monetization efficiency within our ad platform there”. Consequently, Qihoo anticipates MediaV to increase its revenue by around 5% to 10% in 2014.

Going ahead, Qihoo will keep on strengthening its brand in security and mobile by making strategic investments in key areas. This will improve its adaptation organize in item improvement and technology development, which will further stretch its scope of PC and portable Internet alongside cloud-based services. Administration believes that its new products and services will be of extraordinary help in an intense and aggressive business, especially against Baidu.

Baidu's strategies

Baidu is boosting its search business by looking at focused on ads. The organization believes that this will help it drive better returns for customers, furthermore deliver a finer experience to users. Moreover, the percentage of revenue Baidu receives from mobile traffic is enhancing as a result of a finer home page quality.

Determined by its item improvement, Baidu has figured out how to increase its every day dynamic versatile search users from 130 million to 160 million in the previous quarter. So, it is vital for Qihoo to keep improving keeping in mind the end goal to give stiff rivalry to Baidu.

Conclusion

After a solid performance, Qihoo can improve further. The organization is focusing on both mobile and PC to profit from the fast-developing Chinese Internet industry. It has built a strong position in spite of the presence of a greater opponent such as Baidu, and its strategies demonstrate that it should keep


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