Advertising, games, search into Sohu "troika"

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Yesterday, Sohu 10 anniversary celebration held in Beijing, its Chairman of the Board of directors Zhang said, after 10 years of shuffling, Sohu as China's internet industry survivors have been "final ring tickets." Charles Zhang expected, Sohu this year will form advertising, games, search three business to keep abreast of the situation, and hope that through the Olympic Games, more netizens "switch" over.

At the 10 anniversary ceremony, Zhang said, "If you invest 100 yuan in Sohu and have not sold a decade ago, then the 100 yuan investment will be worth more than 100,000 yuan today." Because of the implementation of the ' Technology plus product ' strategy, Sohu is developing very well, news information, entertainment and other content of the quality is improving, Sogou Input method is also beginning to popular, with the entire Sohu matrix to the user stickiness, Sohu advertising revenue will certainly exceed Sina. Zhang also expected that Sohu in this year will form ads, games, search three business to keep abreast of the situation.

Sohu recently released the latest quarterly results show that its brand advertising growth of 46%, more than 40% of Sina, online game growth of 10 times times year-on-year, income and net profit are more than expected. Zhang said: "Sohu brand advertising growth rate has not exceeded the number of competitors, which is not enough to show the benefits of the Olympic strategy." However, Sohu's Olympic strategy has just begun, when the Olympic Games come, Sohu's brand advertising business will have a great start. In addition, Zhang also believes that the value of Sohu has not been fully recognized by Wall Street, such as potential users, sogou input method, etc.

Sohu's latest earnings also show that, driven by online gaming business, its non advertising revenue rose to 48% in the fourth quarter. In the face of the question of whether Sohu will transform into a gaming company, Charles Zhang said he would not think that other businesses were unimportant because of the net income growth of the games. He pointed out that Sohu entered the field of online games just in time to catch up with the great development of the game industry. Moreover, Sohu's net swims because is operates on an integrated platform, its continuity is better than other net swims.

Commenting on the valuation issue, Zhang said Wall Street believes that online advertising, including search advertising, is a platform-type revenue, and its future growth will be guaranteed, thus giving a relatively high valuation. And for online games, Wall Street thinks this kind of business like to shoot a blockbuster, shoot a success can get income, the next film can not be guaranteed success, so to the net price-earnings ratio is relatively low. For Sohu's low price-to-earnings ratio, Zhang said many on Wall Street are unaware of the value of Sohu. In the next 3-5 years, he said, China's internet users could be 500 million, and Sohu will be one of 3 to 5 internet companies offering mainstream Internet services, which will be of high value.

Finally, Charles Zhang also said, "Do the internet like rock climbing, or big, or clear zero." The internet has never been stable and orderly, always be breakthrough and innovation. Innovation is a consumer media platform revolution, only the company to grasp this opportunity to survive. At present, Sohu is not likely to fail, but in the future can be successful to what extent Sohu should consider the issue. The