Author 丨Lius
Edit | Kang Xiao
Produced | Shenzhen Network Tencent News Xiaoman Studio
"DeepNet" learned that Baidu has made a major adjustment to the sales system of the mobile ecological business group (MEG) that has not been seen in many years. Specifically, the original sales system composed of KA (key customers), direct sales, channel distribution, and distribution agents will be adjusted into nine parts, including four industry departments (mass consumption, big health, content consumption, business services), channel ecological cooperation department, channel sales development department, marketing service contact center, sales management department, and sales service department.
This adjustment is related to Baidu's mobile ecosystem strategy.
Shen Ji, executive vice president of Baidu Group, told DeepNet that since 2019, Baidu's mobile ecology has been deepening in cognition, but the general direction has never changed, that is, adhering to the "X +Y" strategy and promoting service and personalization.
Shen Ji dott believes that the reform based on the sales system is "decisive" for the development of Baidu's mobile ecology, and to a certain extent, it can improve the efficiency of commercialization and is crucial to achieving more diversified revenue.
In the past for a long time, sales is an important engine of Baidu Mobile, the original path has been used to this day, but with the mobile ecology to the vertical deep ploughing of the idea into the sales system, in maintaining the original distribution model channels, Baidu Mobile's goal is to be targeted to different customers in different industries, targeted.
It is a common fact that the growth rate of Internet advertising revenue is declining. According to the "2021 China Internet Advertising Data Report", the overall advertising revenue in 2021 was 543.5 billion yuan (excluding Hong Kong, Macao and Taiwan), an increase of 9.32% year-on-year, and an increase of 4.53% compared with the previous year. This means that the cost of traffic will increase accordingly, and advertisers will be more rational. In the stock competition market, how can the platform prove the efficiency and value of its own advertising?
This adjustment will obviously lead to a corresponding transformation of the application of personnel and the methodology of assessment. Hard metrics are related to revenue scale, but soft metrics behind them, such as industry insights from front-line sales, as well as contributions and recommendations to user products and commercial products, are equally important. According to this logic, they no longer rely on the simple way to find the target consumer through big data, but to achieve trust with users through content. This is also the next challenge for Baidu Mobile.
Search and information flow have always been the core of Baidu's mobile ecosystem and an important part of the company's revenue.
But search is no longer the same search, and the business path is changing. In the past, many of the demand for search was suppressed, and now it carries the goal of providing users with more usage scenarios and service capabilities, which also represents more commercial space for Baidu in the future, in addition to advertising, such as the Baidu App "Ask a Question" that may develop into a membership product (the number of consulting orders in December last year increased by 60% compared with September), and the transaction, commission, and live broadcast revenue that can be expanded on this basis.
Baidu put forward the strategy of "personalization and service" in 2020, which is fundamentally to "continuously increase the supply of ecology" and build a new mobile content ecology. This represents the most critical change goal of Baidu's mobile ecosystem in the next few years; in 2021, Shen Ji will disassemble the above strategy into an "X+Y" layout, which is a platform product that horizontally develops the scale of users, such as Baidu App, Good Looking Video, Baidu Network Disk; Y is a vertical vertical business, such as health, B2B, automobile and e-commerce. "Horizontally do wide and thick, longitudinal do deep and fine." Shen Jitter said.
Shen Ji said that Baidu Mobile's goal in 2022 is to continue to broaden the entrance on the basis of the existing strategy through organizational adjustment and adjustment of collaborative methods. This also verifies the urgency of Baidu's mobile transformation.
According to the financial report, in 2021, Baidu's revenue was 124.5 billion yuan (US$19.54 billion), an increase of 16% year-on-year. Among them, Baidu's core revenue was RMB95.2 billion (US$14.93 billion), an increase of 21% year-on-year. Advertising revenue was RMB74 billion (US$11.60 billion), up 12% year-on-year. In the fourth quarter of 2021, managed page revenue accounted for more than 40% of Baidu's core business advertising revenue; in 2021, Baidu App provided 74% more service functions; as of September 2021, Baijia creators increased by 35% year-on-year to 4.6 million; Smart Mini Programs monthly active more than 460 million; by the end of 2021, Baidu App monthly active reached 622 million, an increase of 14% year-on-year, accounting for 82% of daily login users.
But these are not enough, Baidu Mobile's adjustment has not been fully reflected in the growth of revenue and profit, and the success or failure of the adjustment of the sales system is also the final test of Baidu Mobile's strategy.
"DAU and MAU continue to grow, but the value growth expected to users is higher, and the results of strategic execution in the past year also prove this." Shen Shu said. "From my desire, advertising revenue does not decline, the proportion of advertising revenue should be declining, and there should be more diversified income."
In yesterday's dialogue with "Deep Net" and other dialogues, Shen Ji also gave his own answers to the logic behind the adjustment of the sales system, the new growth points of business and users, the thinking and planning of short videos and live broadcasts, and the commercial space other than advertising.
The following is the Q&A transcript compiled by "Deep Web":
The original intention of the transformation of the sales system
Q: What was the original intention of the adjustment of the sales system, and what are the opportunities at present? How much incremental will it be?
Shen Jitter: In the long run, this adjustment will play a decisive role in the development of the entire Baidu mobile ecosystem. The adjustment itself is in line with the "X+Y" strategy.
The early search engines of the Internet solved all the problems of the world, but the trend of industrialization has continued and deepened. Even today, Baidu APP does its own platform products, rather than in-depth industry construction, from the development of enterprises to the growth space will be affected.
In the past period of doing automotive, health, B2B process, we have enjoyed the dividends brought by the industry, in fact, we can further release the user value in the terminal, while bringing a good experience to users, forming a positive cycle.
In the industry we have done in the past, we have found that wherever we work hard to build the vertical category, the user experience has improved significantly, the traffic scale has gradually improved, we are willing to invest in the industry, the user will buy it, the buyer will be revisited, and there will be more users, so a relatively good closed loop has been formed on these vertical categories.
In addition, we also have more investment in Mini Programs, which makes us provide us with new solutions when the mobile Internet is gradually islanded, allowing us to further enrich the content and service supply in the Baidu mobile ecosystem. The content and services provided by mini programs are different from the stage of free growth of the mobile Internet in the early years. Under the framework of the Mini Program, we must also promote the development in an organized and planned manner, so that the Mini Program can grow better.
Whether it is self-built business or building a more prosperous ecology through mini programs, it is inseparable from the understanding and understanding of the industry of content and services.
From this point of view, we promote the adjustment of the sales team system, because in the past period of contact with the team, I have emphasized the integration of business and sales, which is actually in the same vein and open up before and after. In this process, our more important value is to have insight into the industry and put forward higher requirements for commercial and user products, so as to make the ecology more active and customer-friendly docking, rather than buying and selling.
Combining all the factors, we are doing the industrialization of the sales system at this point in time, and we are very confident because we have verified the experience of industrialization in the past, and at the same time we are hopeful, because we see that this trend is irreversible. From this point of view, I still feel that not only can not weaken the investment in sales, but with such a main line, the synergy of commercial sales will be clearer, and we will continue to introduce industry-oriented talent supplements.
Zhao Qiang (Vice President of Baidu): Under the service strategy of deeply cultivating the vertical category of the industry, it is imperative to transform the sales system into a customer-centric industry.
In the past, the sales department was divided into customer attribution, and the organizational structure of the service model was defined by the sales department, which could not fully meet the needs of the long-term development and organizational effectiveness of Baidu's advertising business, as well as the needs of current customers.
For example, the same is Baidu's direct sales branch, our team will face both maternal and infant customers and game customers, the two types of customers' catalyst habits and delivery methods, marketing goals are completely different, the original with the same set of solutions, the same service team to cover the way, need to improve and change. This requires both technology and product upgrades, as well as internal organizational changes. After the adjustment, we will match the sales department by customer industry, and define the service model by customer attributes and volume.
The adjustment does not involve any adjustment of the size of the personnel, nor does it involve any salary and benefit adjustment, nor does it involve the change of the employee's work location, but only reports the change in the relationship and the industry of the customer.
Q: In a business system, sales is a very important part of strategy, and the core of what you just mentioned is to strengthen trust and dependence. What is the logical relationship between making business adjustments and strengthening the trust and dependence of users?
Shen Jitter: In the early days, everyone came to Baidu to search for demand and click on links, so we should try to do a good job in the quality and authority of the content, but at this time, the user did not complete the closed-loop demand in the Baidu system, and the part of Baidu that was really responsible for the user experience was relatively limited, because the user clicked and left, and after arriving at a new website, Baidu had no way to serve again.
Now Baidu App's daily login users account for 82%, and the contract between active users and the terminal itself is deeper than before, so Baidu hopes to provide users with a better service experience. Therefore, we invest in the construction of mini programs to continuously improve the user experience, so we must provide users with more professional service capabilities.
Last year, we upgraded the Slogan of Baidu APP to "Baidu, life is better". Search is too popular, so that we do not realize the importance of search for our lives, it is precisely because of such user habits, it is explained that on this line, search and recommendation two combination has a broader opportunity, can provide users with better service, at this time it depends on whether it is used to go one step further, users search for a Shanghai weather may not just want to understand the weather, it is possible to want to travel, it is possible that my friends are there, behind is a lot of rich information, If we have good service capabilities at this time, we can tap good demand and do a good job of closed-loop services.
When you finish searching, you definitely want to book tickets, these are very coherent needs for users, and in theory, there should be a very smooth experience. In fact, when the entire service is not built, there is no supporting service when it is very fragmented, you search and then open Ctrip to buy tickets, so that the experience of the entire mobile ecology is fragmented, the user experience is also fragmented, this is why we say to provide users with better service, users give us more trust, we want to provide users with end-to-end services, at this time to have a quality grasp of service. Find customers from sales, and then thoroughly open up with commercial products and user products.
Q: Does this adjustment mean that the proportion of Baidu's direct sales and agent revenue will be adjusted? If so, what is the proportion of the specific adjustment? How many people do you want to add to your sales and operations staff?
Zhao Qiang: This adjustment does not involve the channel distribution system, but only the original direct sales branch, industry development department and other three sales units to do a comprehensive industrialization, the core purpose of this is very simple.
The first is that advertisers and industry needs are upgrading, and now advertisers' demand for marketing is more diversified and personalized than before, and the requirements of different industries for marketing products and solutions are very different, which requires us to provide more vertical and customized marketing services. I give an example, to the example of diapers, through Baidu big data, our consumers from the efficacy, segmentation scenarios, IP joint multi-point of view, in the decision-making, the number of user searches reached 19 times, brand comparison to compare more than three, indicating that consumers' decisions are diversified, the personality of the crowd is also subdivided, advertisers are good, enterprises are good, from product operation to user operation, to find the real needs of users more and more important, solutions for users to be more and more personalized.
The second is that Baidu's marketing capabilities are upgrading, in the past two years, Baidu has launched a series of product innovation marketing tools, such as enterprise hundreds of numbers, including small programs, these products are currently more mature, according to different industries to provide customers with more customized services. I can also give an example, we once worked with a large international milk powder brand, by judging the baby's cry, relying on AI technology, we know what the baby really wants, in this way to give brand advertisers more, more high-tech sense, and indeed more valuable services to consumers.
The third is to cooperate with the upgrading of Baidu's mobile ecological strategy, the future will definitely provide different industries with services not limited to advertising and marketing, after our industrial structure, it is conducive to our understanding of the deep needs of different industries, and then provide digital services to more enterprises in the future.
Based on these three points, the overall income ratio of large channels remains unchanged, some important links, or Baidu originally did not invest more resources, more manpower industry will give more attention, just like I just said that the mother and baby industry will invest more strength, the increment bigger and stronger.
Q: How are staff adjustments planned? What is the logic of adjustment? What has changed and what has not changed?
Zhao Qiang: The two keywords of this adjustment, one is customer-centric, one is to deepen the industry, mainly according to the customer's industry and customer attributes for the adjustment of the sales team, a simple sentence is to divide the sales department by the customer industry, and match the service model with the customer's attributes and volume, which is the part of the change.
Unchanged place, the entire channel distribution model is to continue to maintain, the main purpose of this adjustment is to through this industry transformation, the original insufficient investment in the industry, subdivided industries and deeper and bigger and stronger, so that Baidu marketing can better achieve customer-centric, and truly become the preferred marketing partner to help customers grow.
Q: Methodology in the application and assessment of personnel?
Zhao Qiang: After the adjustment of the entire industry, the four major industry departments will focus on the industries they are in charge of, and at the same time, they will continue to increase investment in the advantageous industries, and in some industries that have not been concerned in the past, as well as industries with insufficient investment, they will also increase personnel and manpower to better expand the industry to cover customers.
From this level, we will put forward higher requirements with the heads of industry departments, not only the requirements of GAAP, but also the coverage of the industry and the coverage of customers, to ensure that we can provide better marketing services and marketing solutions for industry customers in all industries.
Q: What changes have taken place on the product side since this adjustment, and how to balance the ability to commercialize with the ability of the product. Like advertising ordinary users know that it is advertising at a glance, how to maximize the advantages of ordinary user experience and content-based business relationship?
Zhao Qiang: For user products and commercial products, the industrialization transformation of our sales system does not affect, or does not involve user products and commercial products, mainly or the organizational structure adjustment of sales, mainly to improve the depth of the industry and service levels, service capabilities, through such adjustments, the service interface for customers is the only one, and the service is closed-loop.
In terms of commercial products, in the past two years, Baidu has continued to launch a variety of marketing products such as enterprise hundreds of houses, as well as small programs, etc., in order to better meet the user experience and improve customer satisfaction, and has also achieved more significant results, like the earliest when I introduced organizational adjustments, in the past three quarters, Baidu hosting page revenue accounted for more than 40% of core marketing revenue, which is a very high proportion, and we have also achieved very good results, four consecutive quarters of financial reports have exceeded market expectations, In particular, Q2 in 2021 achieved the highest revenue in Baidu's history in a single quarter. From these levels, baidu has made great improvements in commercial products, including user products.
Q: What are the indicators to measure the success of this architecture adjustment?
Shen Jitter: This is something we have to consider when making adjustments. The scale of revenue is positive and should be a hard indicator, but in this matter I see more of a soft indicator, that is, the contribution and suggestions brought by the industry insight of sales to user products and commercial products.
I just mentioned that internally in the process of close integration and communication between the three aspects of business and sales, in fact, the insight feedback obtained from the sales front can be quickly passed on to user products and commercial products, especially in the process of the reality of business integration, including the gradual improvement of all the service-oriented construction infrastructure we just talked about, I think these reactions will be faster than ever, from this point of view, I still have higher expectations for this point.
Q: Under the new architecture, has the specific work logic of sales changed?
Zhao Qiang: Now with the upgrading of marketing, everyone pays more attention to content marketing, just now Mr. Shen has been emphasizing that in the past, commercial advertising products can accurately find target consumers through big data, but they cannot help advertisers communicate better with users like content marketing, because content is easier to get consumer trust.
After providing content marketing services, there can be a talent to write an evaluation report, but also through the Mini Program to open up all the people and goods yards, we provide international luxury customers with Mini Programs, through the Mini Program in Baidu to operate, from traffic acquisition, user acquisition, user management, such a closed loop can all be completed in Baidu, which provides customers with a complete marketing solution.
Look for commercial space outside of advertising
Q: What is Baidu's definition of mobile, how will it develop next, and what are its expectations for the future?
Shen Jitter: In a short period of time, meG's strategic positioning and strategic path for the mobile ecosystem are still relatively clear and continuous, from 2019 to the present, there is a process of continuous deepening and refining of cognition, but the general direction has basically not changed, that is, adhering to the X+Y strategy and promoting service and personalization.
As for how to balance innovation with stability and sustainability in this process. I just said that a person can become better, can have more knowledge and ideas, and constantly iterate forward, to see what dimension of innovation this innovation is innovation, first of all, I think the times continue to progress, and the development of mobile devices to today is definitely not the end. The emergence of 5G and the rapid development of artificial intelligence have brought us a lot of room for possibilities for growth, promoting the continuous progress of the entire industry and industry. For example, the AIGC we are doing recently is to use artificial intelligence technology to help us generate better content and reduce the production threshold of creators, which are all using technology to make things that we could not do before feasible, which is how we want to continue to extend the platform on the basis of making it wider and thicker.
As another example, asking about this product is that we believe that there must be someone in the world who is best suited to answer your questions, this person does not have to be a professor, a doorman can just answer your hospital opening questions, and a driver can tell you whether the intersection is open on a foggy day.
We can take a lot of knowledge surplus, time surplus, take it and connect with people in need. There is a most suitable person to help you solve the problem, it may be a knowledge problem, it may be an emotional problem, it may be a companion problem, at this time the connection ability is further strengthened, this time is the continuous innovation and iteration of the platform. The whole process will make the mobile ecology constantly plump.
Like you just mentioned how we improve the ability to monetize, the duration to a certain extent represents the degree of monetization, the degree of monetization of the entire mobile ecology is very low, and everyone's cognition is not the same. The proportion of Baidu advertising monetization is far lower than that of international friends, coupled with the commercial value currently created by a single user, it is actually low in the industry, and there is absolutely no radical realization. It is these that bring us a lot of space for commercialization, we have a terminal, coupled with the ability to do infrastructure services for mini programs, the monetization behavior of commercial value after users come to Baidu is actually higher than before. It is for this reason that I think the release of potential is still obvious.
To sum up, first of all, our X+Y strategic play will continue, in this process, our service and personality, in the search and recommendation of the scene slowly show a strong growth space and user stickiness. Servitization and personalization will greatly enhance the ability to monetize. From these scales, this is indeed different from everyone's usual cognition, we have a large number of authors in Baidu have very good growth space and commercialization capabilities. We'd love to see that because they're able to monetize and prove that users are buying in, which I think is very critical. This money is really bought through his knowledge, bought by his value users, and finally formed his own earnings. The whole line looks, the more you look at it, the more you can find that servitization and personalization are indeed to expand our new growth space, long-term monetization ability is no longer solely dependent on advertising monetization, advertising monetization is a very important monetization ability for us, but we just talked about these service-oriented capabilities to bring e-commerce members, such as ask a question, I will be a very good membership product in the future, and then down the transaction, commission, live broadcast, etc., will also enter a new stage.
Q: The overall growth rate of Internet advertising has reached single digits, how do you think about the expectations of the Internet advertising market in 2022, is it optimistic or neutral, or is it still more challenging?
Shen Jitter: This year's Q1 financial report also said our expectations, on the whole, this year's country will gdp growth at about 5.5%, is indeed a very challenging year of growth, whether it is demand, supply, or future expectations, will affect the development and growth of the entire economy. From this point of view, especially advertising-related business pressure will be relatively large.
Therefore, we are also actively expanding diversified monetization in the advertising business, including the income of members, the income of transactions, although the proportion of income is still relatively small, but I think these trends are very good, I think advertising will continue to be under pressure, and the growth rate of other diversified realizations remains at a relatively optimistic level.
Zhao Qiang: My judgment of the entire Internet advertising market is more cautious and optimistic, which has several major backgrounds, one is that the birth rate of the 2022 mainland census is only 8.52 ‰, which is the lowest in 47 years, indicating that the demographic dividend is over. The growth rate of mobile Internet users in May for the first time showed negative growth, the scale of 1.16 billion, smart phone shipments further reduced, mobile Internet must enter the stock market, from this point of view must be cautiously optimistic.
Why do we do the transformation of the industry this time, is also based on this fact, the advertiser's traffic purchase cost will continue to rise, relative to the enterprise will be more rational, in the stock market must establish a deeper connection with consumers, so as to ensure the existence of a value community with users, which is why strengthen the insight and understanding of the industry, can provide targeted industry solutions and marketing products for the industry can be implemented, can help advertisers to find value, confirm value, spread value, In the end, it is my overall judgment to be able to achieve a value community between advertisers and consumers.
Q: Was the adjustment of live broadcast and video related to its commercialization ability some time ago? What is your attitude towards video and live broadcasting business, and how will you make efforts in the future?
Shen Jitter: In the implementation of the X+Y strategy, we hope to focus on the industry upgrade for a period of time and combine with Baidu's advantages. So, we did make adjustments in some industries, but video and live streaming were largely unaffected. We were at that time some specific vertical categories of live broadcasting, those live broadcasts we did for a while to find that live broadcast is not necessarily the best carrier way in that industry, we did make a little adjustment, but overall it was not affected.
Video is actually a medium with strong monetization ability, and for Baidu, I think it is more about the infrastructure and content supply of the mobile ecosystem. I don't know if you have paid attention to good videos, good videos I think playing the path that no one in this industry has tried, that is, we use circles, use knowledge points to make frame videos, and sometimes enrich the content of videos through bullet screens. For example, when you watch a video, if you are watching a person introduce their new house, at this time he will talk about what my air conditioner is like, what my TV is, and these people who watch it are very likely to say that I like your air conditioner, like your TV, at this time we send it in the comment area or good, the above bullet screen is good, can not support the interaction between this frame and the content, now let the user circle on the frame, directly mark on the TV, you can do a message interaction discussion on the frame, expand the information.
Baidu APP as a platform is very inclusive, you can search for text and pictures, we can also distribute pictures and text. It is for this reason that a large number of Baidu APP distribution videos, but also do a lot of innovative work, we recently did the integration, is to integrate short videos and small videos in one, the exploration of this track can continue to continue, information flow in the Baidu APP container is also constantly trying new experiences, from the data point of view these attempts are growing.
Q: The gap between video platform traffic and information flow platform traffic has widened, how can we restrain our ambitions for video?
Shen Jitter: The video itself does not need restraint. It is a form of media, a carrier, can be a good presentation of ideas to convey information, even in the case of vibrato, Kuaishou scale is so large, I also believe that video products can not be a single form for a long time.
Just like when we were in the graphic era, the entire Internet ecology is very prosperous and active, there are many organizational forms, display forms, interaction methods, when it comes to mobile, I think not a single product form can solve all the problems of the video era, in this process everyone should maintain a continued open mind, how to make this medium with their own advantages, or their own advantages combined, better service users.
For example, "ask a question", now most of them still ask questions and answer questions in the form of text, and it is likely to become voice in the future, even wheat and video calls, which is the use of video and voice multimedia media. Of course, there are still many things that can be precipitated, and the sedimentation can be redistributed in the form of video, which can allow users to search again, whether it is search or recommendation can improve efficiency, advertising can improve efficiency.
Not only is there no restraint in this regard, but in the Baidu APP, we are exploring the application of video in a larger range and a larger possible space. AIGC (Note: after UGC, PGC, the new use of AI technology to automatically generate content production methods) is also mostly in the field of video to do, so there is still a relatively large room for growth.
Redefine search
Q: The search repurchase rate of Douyin users has reached 30%, has this business grabbed Baidu's stock market? Is there pressure on your side and how do you cope?
Shen Jitter: Many of the search needs are suppressed, if we have a universal assistant, the number of searches is far greater than the current scale, users will stimulate search needs when using the scene, these new scenes have stimulated new needs of users, from Baidu's own scale, our search scale is still increasing, the search speed is very fast, and the search growth rate of the whole network is also continuing to increase.
On the contrary, the search of vibrato gives us more confidence, we are more fully aware that the needs of the search itself are not well met, or there is still a lot of room to be stimulated, and for this reason, our own search experience is also in various ways to reduce the threshold of use as much as possible, as far as possible to stimulate user needs, so that everyone can better use the search tool.
In addition, as the earlier leader of the search industry, in fact, Baidu is also constantly paying attention to the changes in the industry, and we also hope to learn from each other's strengths and improve the user's experience of using search. From this point of view, we are also looking at the characteristics of different search engines, now there is no doubt because the existence of information is indeed in the gradual video, but it is far from the stage where the video can carry all the search needs, as the experience evaluation of the entire search engine, from a professional point of view, Baidu search is definitely more comprehensive, more accumulated, but there are also places to learn from others, we are also paying attention to changes in the industry.
Q: What is the logical relationship between business adjustment and strengthening user trust and dependence?
Shen Jitter: In the early days, everyone came to Baidu to search for demand, click links, we have to do a good job in the quality and authority of the content as much as possible, but at this time, users have not completed the closed-loop demand in the Baidu system, and Baidu is really responsible for the user experience, because the user clicks and leaves, and after a new website, Baidu has no way to serve again.
Now Baidu App's daily login users account for 82%, and the contract between active users and the terminal itself is deeper than before, so Baidu hopes to provide users with a better service experience. So we invested in the construction of small programs.
Last year, we upgraded our Slogan to "Baidu, life is better". Search is so popular that we do not realize the importance of search for our lives, it is precisely because of such user habits, it shows that on this line, search and recommendation two combinations have a broader opportunity to provide users with better service.
At this time, it depends on whether it is necessary to take a step forward, the user searching for a Shanghai weather may not just want to understand the weather, it is possible to want to travel, behind which contains a wealth of information, if we have a good service capability at this time, it is possible to tap good demand and do a good job of closed-loop service.
Optimize adjustments and timely stop losses
Q: Some time ago, the video and live broadcast businesses were adjusted, does it mean that the ability to commercialize is not very good?
Shen Jitter: In the implementation of the X+Y strategy, we hope to focus on the industry upgrade for a period of time and combine with Baidu's advantages. Therefore, we have indeed made adjustments in some industries, such as some specific vertical live broadcasts are not necessarily the best carrier methods in that industry, but video and live broadcasting as a whole are basically not affected.
Q: When you first took over MEG, you mentioned that new products will definitely lose money, but depending on the long-term development, I want to know what range is the right range for new products or businesses, or to what extent to stop losses in time.
Shen Jitter: Yes, we stopped some business last year, proving that we have a mechanism on this (stop loss), there will be monthly analysis meetings every month, look at the growth rate and profit of this product line, and there are also reference standards for internal judgment, either you are a business that makes money grows slowly, or you lose money business grows fast, and you have to continuously improve the methodology, but also make adjustments.
Just now everyone asked about the end of last year's video adjustment, I think it is very good, the adjustment will be adjusted, this signal is a positive signal, but it continues to become more and more huge, there is no slimming plan, no business focus will also be a problem.
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