Cao Chao: The new business is not good, Sina still relies on portal advertising

The office on the left of Sina's new CEO, Charles Chao, is the office of former CEO Yan, and the right is the office of Sina's predecessor, COO Lin.　　Lin has left Sina, as Sina vice chairman of the Yan is preparing to travel to ease the years of hard work.　　Next, continue to worry about Sina busy is Chao. Chao's desk is a large square, black bag with a full set of golf equipment. "Only Yongji ever opened the bag and studied the lever. Always wanted to practice, but there was no time. Chao said with a smile.　　In order to keep the exercise, Cao now often practice putting in the office. May 10, Sina announced the company's senior personnel adjustment. Former CEO Yan resigned as vice chairman of the office. Charles Chao, the company's former president and chief financial Officer, was appointed chief executive to the company's board.　　Confirmed market rumors. May 19, Cao Chao in the office to receive an interview. About a week ago, Yan left Sina's CEO position, his regret being "not finding a third leg for Sina".　　Chao said: Sina will focus on the development of the portal. As the former CFO of Sina, Chao has an unknown side: the media background, students are most of the media circles. "Sina's media strategy is my set.　　"said Chao. The new business is not too successful "21st century": the last earnings in addition to advertising, other business year-on-year decline.　　Have you felt the pressure of performance when you first took office? Cao Chao: there must be pressure, and the slide has been going on for a year. But we're going to split it. Sina revenue mainly from two parts: one is advertising, one is wireless. Advertising is growing year-on-year, but wireless performance has slipped. The decline in the wireless business is more the cause of the industry. As early as two years ago, the wireless services of other portals had bottomed out.　　Sina's wireless business has fallen later than other portals, and the base is much larger than other portals, so the negative impact on the financial statements is particularly noticeable at this stage. "21st century": Yan Sadly, there is no third leg for Sina to find profit growth.　　Where do you think Sina's third leg is? Cao Chao: I think Sina should still focus on content as the core of the Internet portal. Sina has tried some new business, not particularly successful. If we can do the advertising and wireless both legs are good, already good.　　As for the third leg, I haven't thought of it yet. "21st century": Sina still has to focus on the portal?　　But in the media model innovation has been inferior to Google and other companies. Cao Chao: In fact, Sina has been insisting on innovation. Media innovation includes two levels. One is the innovation of advertising mode and media mode, and the other is technological innovation. Sina has been ahead of many internet companies in the innovation of advertising mode and media mode. Google is a technology innovation that represents a new way to get information.　　Sina is also doing search, do blog, do video content. "21st century": Even so, in new technologies, new applications, Sina seeNot as fast as small companies, how to solve this problem? Chao: no wonder. In the High-tech industry, it is a common phenomenon that small companies react quickly to new technologies and applications. But for a mature company such as Sina, Sina has a large number of users and sophisticated technology platform, some successful innovation in such a large platform easier to carry forward.　　Many of the startups in Silicon Valley today are developing and innovating around Google or other big companies, hoping one day they will be used by these big companies.　　The potential of online advertising has brought a high P/E "21st century": is the focus on the portal because the advertising business is stable? Cao Chao: You can see, because our core portal has been very healthy development, and the corresponding advertising business has been growing.　　As long as we persist in this way, our overall performance rally is within reach.　　"21st century": But at present, the network advertising market than online games and wireless services are small, this will not affect Sina as "one elder brother" of the lake status? Cao Chao: This situation is temporary. In the long run, the network advertising market is very big. This is the reason for Microsoft to release the "Live" program, the overall transition to advertising, and Google's rapid growth.　　It is precisely because of the growth potential of advertising, U.S. investors to Sina's P/E ratio is so high.　　"21st century": Is China's advertising market the same? Cao Chao: quite large. American internet advertising accounts for 6% of the overall advertising market, while China is only 2%. In recent years, China's Internet advertising growth has been higher than the United States.　　So focus on the online advertising market is not a problem, and the key question is whether we have the ability in the online advertising market to occupy a relatively large market share, continue to stay ahead.　　"21st Century": Sina launched a blog to better attract advertising? Cao Chao: There is no advertisement depending on the user volume and user stickiness.　　Sina's blog As long as you can constantly increase the number of users continue to increase traffic, then sooner or later, advertising will come up, and the traditional media advertising is the same truth.　　"21st century": What is the current blog advertisement? Cao Chao: The current traffic base, the timing of advertising is not ripe. Blog to attract ads must meet two conditions: first, traffic, the second is the rules of the game. Blog traffic needs to be done even more.　　In the long run, there is flow, the blog will make money sooner or later. Traditional media is not passive "21st century": as a new media, what do you think of traditional media?　　is the traditional media in a passive position at present? Cao Chao: I don't think traditional media is in a passive situation. No matter how advanced the technology, how the platform changes, people to the traditional media original, authoritative and accurate characteristics such as the demand remains. Indeed, the Internet platform is a combination of traditional media performance, and the traditional media has no interaction and personalized characteristics, so that content production, access and distribution of more diverse ways. Traditional media may need to think about how to adaptTechnology development, better use the new platform to develop their business.　　There are many new models that are worth exploring.　　"21st century": Are you suggesting that traditional media use new media? Chao: Sina has maintained good relations of cooperation with traditional media. When Sina was launched, it was actually a free platform for traditional media to help commercialize some media. The traditional media also provides a lot of content for Sina. In fact, most of the Internet media operating mode is consistent with the mode of Sina. The establishment and existence of this model has its rationality.　　As for this pattern will not change, how to change, it depends on the market this invisible hand to adjust.　　21st century: Is the benefit distribution mechanism ideal with traditional media? Cao Chao: The same as other industrial chains. An industry chain has many links, each link makes the contribution to be different, the ideal distribution mechanism everybody assigns the benefit according to the contribution.　　In fact, an industry is always approaching this ideal distribution pattern.　　"21st Century": Microsoft, Tencent are in China with some media licensing cooperation, which will make the current distribution system change? Cao Chao: Sina and traditional media content cooperation are authorized. Sina has always been very normative in copyright. Other network companies and traditional media licensing cooperation has been ongoing, this is not a new situation.