Zhou: Free + value-added service mode is also applicable to mobile internet

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Zhou on October 26, "360 Secure Browser" to steal user privacy

Qihoo 360 's security software free strategy is an example of "disruptive innovation" that Zhou is happy to talk about. Qihoo 360 's business model is called freemium (free) +premium (value-added services). To provide free security and anti-virus services to individual users, in order to obtain a large amount of users, on this basis, users will be imported into the browser and navigation products, to advertisers to collect revenue.

"This mode of mobile devices will also apply, but to first put the foundation in prison." Zhou said in an interview with the investor's newspaper.

However, there are insiders believe that 360 of the free function and charging function is not the same product or service, it is difficult to call freemium. Senior Internet Observer Bo to our correspondent bluntly, "the 360 model is feasible because of China's relevant regulatory presence in the gray zone, which is in the market order of the country is not possible." ”

Benefit from a relaxed regulatory environment

Most of China's Internet products can find corresponding models abroad, for example, Baidu is China's Google, Weibo is China's Twitter. But Qihoo 360 could not find the corresponding pattern.

Zhou also said to reporters, "360 this model is relatively unique to the current global on our original model." ”

The 360 business logic can be simplified as: the security industry is subverted by free security. Zhou says 360 life is free, also do not play ads, so only money does not earn money, on this basis, but also solve the security problems on the browser, the user accumulated a browser, 360 of products from the backstage software to the foreground products, the browser itself does not make money, but can rely on navigation search and games to gain revenue.

Qihoo 360 earnings in the second quarter of this year showed that, in June 2012, 360 of PC-side products and services had a monthly active number of 425 million, June 2012 's market penetration reached 94%, as of June 2012, 360 of the browser's monthly active users of 272 million, the market penetration rate of 61%.

The earnings also showed that Qihoo 360 's online advertising business earned 50.82 million dollars in the second quarter. Online advertising is mainly 360 browsers, Web site navigation and other platform ads, but also including Google and other search companies to provide traffic import fees.

Although this model is more known as freemium, freemium should contain two elements: free function and charging function for the same product or service; The value-added function is for ordinary users, not for enterprises. and 360 security services to users free of charge to the enterprise traffic. First of all, free function and charge function is not for the same product or service, secondly, the charging object is not for ordinary users. Industry insiders pointed out that this is actually the Baidu model.

"It has all the flow, not user relations, user transactions or other user consumption, so the only thing it can Rob, is Baidu pocket money." Bo that only traffic without user relationships is the logic of the 360 development search.

AI Media Consulting Zhang in the interview with this reporter also think, Qihoo 360 is actually with Baidu has the same business model of the company. "360 of the main revenue is advertising revenue. Like Baidu, it is the same business model by helping others get the flow to make money. ”

But Bo does not agree with this model. "Security software can be said to be an armed force on the Internet." It has high system privileges on the computer and can obtain information from many of the underlying operating systems. If the security software itself is not independent, but rely on security software to clear the window to do other business, which is a bit like triad. For example, as the public security organs at the same time open dance halls, restaurants, it can suppress other operators. McAfee, the world's largest security software company, makes money entirely from the security software itself. Google has set up a charitable organization with other companies, Anti-malware, funded by sponsors, and the organization itself without any profit-making purpose. But 360 do the browser, do the navigation Web site, all these profitable business is not created by themselves, are imitating others. This is not possible where the market order is regulated. ”

Bo pointed out that because China's market regulation is not in place, the law enforcement of these issues is more tolerant, so many internet companies are drilling loopholes in the law. "such as SP business, for example, the media. It is hard for Americans to understand why the company can set up advertising screens in neighborhoods and office buildings, a violation of public space. But it can be in China. Property management companies charge property management fees, but also to sell advertising fees. ”

Bo that 360 through the high authority of security software can master more user information, the ability to become more powerful. "And the more information you have in 360, the more money you make." Navigation is more than 200 customers, the ceiling is very low, and 360 almost every quarter in the price increase, to a certain extent can not raise prices, enterprises will not afford. Expand the new profit direction, search becomes its best choice. Search without the ceiling, Baidu's advertising accounted for the proportion of its content less than 10%, but the content of navigation is almost entirely advertising, but Baidu's revenue is still far from navigation comparable. And 360 mastered the user's privacy and other content, mastered the user clicks Preferences, more easily targeted to promote advertising. ”

Enter Search Challenge Overlord Baidu

After a search in August this year, 360 has grabbed more than 10% of the market with its browser portal advantage. Recently Zhou to the media that 360 of the reasonable share of the search is 15%-20%.

Although Qihoo has more than 400 million users, its revenue levels are still low. According to company earnings, Qihoo 360 in the second quarter revenue of 72.8 million U.S. dollars, net profit of 7 million. Baidu released the second quarter of the results, Baidu's second quarter to achieve total revenue of 858.8 million U.S. dollars, net profit of 436 million U.S. dollars.

And 360 and Baidu is a long-standing battle. As early as 3721 times, because Baidu grabbed 3721 of the market, 3721 and Baidu will be user desktop as a battlefield, not only to make their own client plug-ins difficult to unload, and delete each other's clients, rogue means constantly upgraded. The end result of the war was 3721 was sentenced to stop blocking Baidu toolbar installation.

This August, when Qihoo 360 launched its own search, again with Baidu head-on competition, already has more than 400 million PC client users and master browser and other Internet access to the opponents.

And do search engine for Zhou, is back to the starting point of entrepreneurship. In 1998, he started with the Chinese web site "3721", and in the days that followed, tried the search on the platform. The main feature of the site is that users can enter the Chinese language directly in the browser, they will be able to access the target site, rather than enter a more cumbersome English web site. 3721 the rapid success of its investors IDG Shong evaluation: "3721 of the technology is very characteristic, market positioning is also very unique." "Before Yahoo was bought in 2003, 3721 announced that it had made a profit of 40 million."

When China's internet was at a low ebb in 2003, Zhou sold 3721 to Yahoo for 120 million dollars, and then became president of Yahoo China. When it comes to this experience, Zhou has expressed regret several times and sold 3721 to Yahoo and Ma Yun to sell Ali 40% shares to Yahoo, which is considered a wrong decision.

In 2006, Zhou became the head of the Qihoo network. In fact, the 360 initial development position was Community search, which later shifted direction to the security field. But Zhou has been obsessed with the search, and started to force the vertical search at the beginning of the video.

Zhou never worried about how Qihoo 360 earns money, because 360 already has more than 400 million users, and Qihoo 360 can try to put these users in a variety of ways. But although Qihoo has more than 400 million users, its revenue levels are still low. According to company earnings, Qihoo 360 in the second quarter revenue of 72.8 million U.S. dollars, net profit of 7 million. Baidu released the second quarter of the results, Baidu's second quarter to achieve total revenue of 858.8 million U.S. dollars, net profit of 436 million U.S. dollars.

Obviously, search is the Zhou that most want to achieve. Search has a very mature profit model and huge market prospects. "As long as we have enough market share, there is enough traffic, the search business revenue is not a problem." "Zhou is full of confidence.

But since Google faded out of the Chinese market, Baidu in the search field of a single major position to be consolidated, according to the latest report released by Eric, 2012, Baidu in the second quarter of the Chinese search engine market, the absolute dominance of the position has been further enhanced, the market share from 77.6% to 79.4%. Although 360 has the portal advantage of the browser, it still faces challenges to compete for market share from Baidu. Zhou again to sacrifice the safety banner, is aimed at Baidu excessive commercialization led to False fraud Web page is not recognized, focusing on medical advertising, said "do not accept any medical ads."

He told reporters: "If you do exactly the same as others, there must be no chance." And now the search industry, the biggest opportunity is the search industry leaders do not value the user experience. A new search, if the search technology is better than the leader, may not be perceived, the brand is also a gap. But if I don't pursue excessive commercialization and focus more on the user experience, improve the search industry's problems. For example, future commercialization, the number of restricted ads per page, the use of different colors to differentiate ads, the fraud of the horse, fishing links in search results filtered out. ”

Zhou's other "reverse approach" is to play "open cards". In recent years, Baidu exerting its own content products, build Baidu Encyclopedia, know and other products, will flow to their own website, through the search to form a more closed ecological chain. "I'm not going to judge this morally," Zhou told reporters. "That's what any businessman would think." But what I'm trying to say is that from an innovative standpoint, you still need to be subversive and reverse-operated. If someone wants to play a ' closed ' card, you should play ' open '. So in terms of vertical content, we should find a lot of partners who are responsible for doing the content well and we're going to give them the traffic they need. ”

Zhou, who claims to be a believer in "disruptive innovation", said: "The business model is to do the opposite of other things, you sell me for free." Some things may you free, perhaps I do charge service, or say you this product main function all-inclusive, I will do very narrow things. ”

The mobile internet era is still focused on "security"

With the rise of mobile Internet, 360 of the commercial layout has naturally extended to the field of mobile interconnection.

Zhou previously told the media, "My main focus on the wireless internet, the next two or three years is our very big investment, we want in the wireless internet this piece to build their own user base and cloud services." "He judged that smartphones are sure to dominate the Chinese market, especially since this year's thousand-dollar smartphones have been a huge boost for the market, with 300 million-500 million users switching from functional handsets to Android based smartphones in the next few years."

In fact, in the last six months, Zhou in addition to this war with the Ark, there is a raging war: that is, with the Millet technology founder Lei's "The Battle of the", showing the Zhou to the smart phone this entrance attention.

June 10 this year, Zhou on its personal microblog said Millet mobile phone has been successfully financed, valued at 4 billion U.S. dollars, and claims that it saw the millet financing documents, claiming that millet each cell phone profit as high as 800 yuan, is "the consumer when the monkey play." Previously, Lei has been claiming that millet mobile phones "do not rely on hardware to make money."

A senior PR personage pointed out that Zhou in this battle to take the offensive, and millet is more to take the defensive, Zhou constantly, throughout the millet materials, crafts, profits and so on, the war burned in the Millet cell phone, LEI colleagues are mostly only passive see recruit demolition strokes, natural uncomfortable. Zhou's strategy is very accurate, the core of the blame for the existence of millet profiteering, by this negative lei public opinion credit, direct digestion of the brand value of millet mobile phones.

And Zhou with this war of words, for 360 special machine made enough potential. "In the channel, Lei and Zhou 祎 feud, Millet mobile phone will not be pre-installed any 360 of the product." Millet mobile phone sales now more than 4 million, Zhou will lose a larger market. 360 Even if do not do special special machine, onslaught millet, stop millet development, is victory. "Bo told the investor newspaper.

In an interview with this reporter, Zhou said, "360 will continue in the field of mobile interconnection in the PC-side model, security is the core of 360 of the basic services, so will be continued to increase in the field of security products and technology research and development." ”

Market Research Institute of the "2012 Q2 China Mobile Phone Security Market quarterly monitoring report," showed that 2012 Q2 China Mobile Security Market market share of active products, the current 360 mobile phone guards accounted for 63%, ranked first; QQ mobile phone Butler ranked second in 18.2%, the Network Qin Security, Security Butler, Jinshan mobile phone guards to 5.4%, 3.1%, 3% of the share of the third, fourth and fifth separate.

Bo that the user's mobile phone security is not a big threat, the PC on the Trojan will affect the user's normal use of the computer, but the current mobile phone-side security issues are not so serious, rely on security products to bundle other services mode may not work.

Zhou says the second focus outside of security software is mobile phone assistants. In addition, he said that mobile gaming may be the new growth point of China's Internet, 360 will be in mobile gaming to do commercial exploration. "We will still like to run a web game in the browser, that is not to develop ourselves, but to position ourselves as a platform open to the third party, and many game developers to cooperate." ”

And in the mobile browser, due to enter the slower 360 and did not get the market share like the PC side. Analysys International data show that up to 2012q1,uc browser and mobile phone QQ browser is still in the market leading position, both market share of nearly 80%.

"Mobile internet and PC are two different business categories, in the PC strong, does not represent in the mobile phone Internet domain can also strong, no certain relationship." "Zhang, the chief executive of the media consultancy, told the investor newspaper. But he thinks, 360 of users high-end, Tencent's users are low-end, user access will have a certain degree of differentiation.

However, the portal position of the browser at the mobile end is far from being important on the PC side. Wang Xiaoquan think the reason is 2:1, mobile phone applications to the main client, mobile browser and "cloud" match far less than PC browser and cloud as natural; second, the PC era is linked as the core of the network structure, but the mobile phone does not link this concept, the browser's role of parsing links is weakened, the meaning of natural lost.

Zhou said that wireless internet everyone is stones, who do not know the wireless internet to bring about what kind of specific opportunities or shocks, all enterprises are crossing the river. If an enterprise can say to occupy an area, it is entirely out of the interests of the enterprise itself, but consumers are very likely not to buy. Consumers do not buy, all things are clouds. In the wireless internet age, all entrepreneurs should think about the same problem--more attention should be paid to the wireless internet, and what new user needs are not being found and not met. How to continue to innovate, to catch users, to improve the user experience.