Apple getting cut of Baidu ad revenue

Apple getting cut of Baidu ad revenue

Baidu, China's most prominent search engine, has an ad revenue sharing agreement in place with Apple, according to a recent phone interview. There aren't any details on exactly how much of a cut Apple is getting, but apparently it's similar to what Baidu has in place with Google for their Android handset. An analyst estimated that Baidu distributes less than 10% of mobile ad revenue with manufacturers.

iOS 6 introduced many features tailored for China, including Baidu as a default option for web searches and Siri compatibility for language and local search. China got a fair bit of stage time at the WWDC keynote, including tie-ins with Youku's video service and the Twitter-esque Weibo network. There's even talk of new flagship stores and additional carrier support. The concerted effort is no surprise considering Apple's revenue in China tripled in the last quarter.

Google is a distant second place in Chinese search, and with Baidu stepping in with iOS 6, that gap stands only to widen. Assuming Apple and Google had a similar revenue-sharing model in place for Maps, I'm curious how much revenue Google's missing out on now that Apple has cooked up their own solution with some help from TomTom. .

Source: Bloomberg

Simon Sage

Editor-at-very-large at Mobile Nations, gamer, giant.

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Reader comments

Apple getting cut of Baidu ad revenue

4 Comments

Re: "Google is a distant second place in Chinese search, and with Baidu stepping in with iOS 6, that gap stands only to widen. "
At the moment, Baidu leads with roughly 60% of the Chinese online search market. Google is second with about 31%, Yahoo trails with roughly 9%.
Expect Google's share to drop when iOS 6 is released. It's inevitable.

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While Google is going to lose some it's market share in China, they will gain market share in Russia. Mozilla will drop Yandex, the leading search engine in Russia, as their default search engine in Firefox 14, and make Google the default. Google probably isn't worrying too much.