Search advertising agency, has 360 covers eight provinces and municipalities, including Beijing and Shanghai, the price is far lower than the baidu

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with the powerful pressure from performance and the competition, the commercialisation of 360 are stepping up the search process.

insiders revealed that 360 search advertising agency has covered eight provinces and cities such as Beijing, Shanghai, 360 will gradually replace with their own advertising system now use Google Adsense ads system.

Quietly with Google

at the end of 2012, 360, caused a strong focus on the outside world, but in cooperation details has remained mysterious, 360 companies only confirmed the existence of the relationship, but not to disclose any details of the cooperation.

bank of America merrill lynch, according to research from 360 to 2012 at the end of the year begins to access Google the commercialization of the system, but Google can only get a third about traffic, and if the two systems for the same keyword advertising demand at the same time, Google’s priority is lower than 360 own advertising system. Bank of America merrill lynch believe that 360 is likely to be using Google learning, improve their advertising system.

the price is far lower than the baidu

a 360 insiders said that 360 search agent has covered Beijing, Shanghai, zhejiang, jiangsu, guangdong, hebei, shandong and henan provinces, adopt the way of exclusive agency in most area. Advertising way is divided into “brand direct”, “search promotion” and “guess you like” three kinds of products.

search marketing, namely the industry often say “bidding”, who work can offer for keywords to the front of the natural search results, use effect payment model, according to the actual click charge effectively, promote links and natural search results have obvious distinction.

brand direct top in web search results are illustrated to show the form of publishing enterprise dynamic information, product information, promotions, etc.

guess you like ads show in 360 navigation, including the front page of the advertising text chain and 360 television channel, jokes, music channel image banner ads, etc., effect payment model is adopted.

360 exclusive agency in Beijing Beijing world online advertising co., LTD., a head told sina science and technology, said that want to advertise in the 360 search, you will need to open an account, the lowest cost is 4600 yuan, including service charge 600 yuan and 600 yuan on the advance deposit.

the chief says, the left up to 360 in search results on three ads, on the right side, a total of eight, the advertiser is relatively less, so the price is very favourable. In his popular search words “buy”, and “second-hand housing” as the example, according to now in the search results most top only 0.6 ~ 0.7 yuan, while baidu need more than a dozen or even dozens of yuan.

when asked “brand direct” and “guess you like” the price of two kinds of forms of advertising, he says, now can only put in the “search promotion” form, the other two advertising form “360” temporary not open to the agent.

poor profit margins Share price pressure on

earlier this month, 360, President of qi was announced to the outside world, 360 search market share grew by 10% a year, to 2015, will reach 40% of the market share targets. But now about 360 search market share of only 11%, are extremely hard to achieve these goals.

according to the fourth quarter, on revenue of $360 and $103 million, more than $62.3 million over the same period last year growth of 65%, $84 million increased by 23% than last quarter; Net profit than the same period last year fell 15% to $15 million last quarter was $12.9 million.

among them, the operating profit margin of only 11.8%, up from 23.8% a year ago, last quarter was 14.5%. Results after the release, 360 shares of eight consecutive trading day down, down from $35 to $29, or 20%. Analysts are worried about falling margins on 360.

T.H. Capital analyst said the 360 profit margins sharply because they are big investment on search engines, in the future due to traffic acquisition costs and operating expenses growth, profitability is expected to continue to face pressure. He predicts that qihoo 360 profit margins will be 27.1% in 2013, down from 30.2% in 2012. But the good news is that qihoo 360 profit margins should rebound in 2014.

360 chairman zhou during the earnings call, according to the flow will build alliances with partners to share traffic, has now made contact with several third party sites, is expected to 360 search traffic to promote a greater help.

“, however, do the commercialization of the premise that search alliance is ready to search, because only the commercial, to implement part of the revenue share with coalition partners.” In zhou’s view, however, search alliance passive attract traffic, the traffic is garbage flows, and will not bring value for advertisers.

“do the search is a long-term, we are more concerned with whether the user will enter 360 search page, take the initiative to use on behalf of the search engine to real market share, the traffic is really valuable.” Zhou said.