Shen Haoyu interpretation of the phoenix nest income decline triggered users will not play

November 13th news, Shen Haoyu, vice president of Baidu’s business operations, said today that is not a reason to switch phoenix nest Baidu will be fourth quarter revenue is expected to drop by 10%. At the same time, he stressed that the new phoenix nest system for advertisers to bring more sophisticated management, the loss of customers will eventually return.

Baidu announced before will be fully operational phoenix nest in December, to replace the original bid ranking system. Baidu executives in the third quarter conference call is expected, affected by the Baidu fourth quarter revenue will be 10% month low.

significant changes in terms of revenue for Baidu, Shen Haoyu today explained that this is not simply caused by the switch phoenix nest cause. Shen Haoyu said Sina Technology, even if not switch to phoenix nest system, Baidu’s fourth quarter revenue will decline by about 4-7% level.

Shen Haoyu admitted to switch phoenix nest will cause a certain income decline. On the one hand, the switching system of Baidu employees involved in energy, a lot of people into the system to switch the training and preparation of; on the other hand, the new system will not play ", users also need to learn and adapt to the time, so the corresponding reduced budgets.

in the interpretation of the phoenix nest system, Shen Haoyu said that although the new system is not as direct as the competitive ranking, but it can bring a more subtle advertising management. Although switching phoenix nest will cause a decline in short-term income, but Shen Haoyu responded that silly money is not profitable".

Shen Haoyu, however, said that after six months of operation Baidu has been very confident about the new phoenix nest mechanism. He further pointed out that the current market position is also very confident Baidu, the loss of users will eventually come back". At the same time, Shen Haoyu stressed that in a long time, Baidu’s revenue will be mainly small and medium enterprises.

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