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Mobile Advertising Fuels Boom for China's Search Engines

Easou Gaining Users and Advertisers in Lower-Tier Cities (August 05, 2014)

SHENZHEN, CHINA -- (Marketwired) -- 08/05/14 -- Revenues at China's search engines are growing rapidly, and a large portion of growth is coming from mobile. Search giant Baidu recently announced an increase of over 58 percent with mobile revenue contributing 30 percent of the total. But other Chinese companies are finding innovative ways to cash in on the trend. Easou, China's second largest mobile search engine, is finding room to grow in spaces not already occupied by its rivals.

Easou thrives in China's fast-growing second- and third-tier cities. Many users in those cities are mobile-only internet users or those who do not regularly use personal computers. Mobile search has different priorities compared to PC search, according to Frank Wang, Chairman and CEO of Easou.

"PC search usually focuses on information and research. But mobile search tends to focus on personal needs, and is based more on location," said Wang.

The driving forces behind the growth of mobile advertising are the rapid penetration of cheap smartphones and improved 4G networks, said Wang. The higher number of users is attracting both first-time mobile Internet advertisers and others migrating from PC to mobile.

Easou capitalizes on that trend by focusing on business-to-consumer (B2C) advertisers that provide goods and services targeted at China's growing mobile user base, such as education and healthcare providers. Easou's advertising platform, called "The Dragon's Den," lets advertisers set their budget and select where they want their advertisements to be placed. They can choose between search results or place text link or banner ads on the Easou Union, a network of popular websites and apps that run Easou ads. Advertisers can also set the geographic location to show ads in a specific city, province or across the country. Finally, advertisers can also select the duration of the campaign.

Over 90 percent of Easou advertisers are small and medium enterprises (SMEs) that are advertising on mobile Internet for the first time, unlike Baidu, whose mobile advertisers are mostly larger companies shifting their advertising budget from PC to mobile.

"Right now we're seeing most of our growth from SMEs," said Wang. "But next year we will also benefit from the increased budget of brand advertisers to mobile Internet."

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About Easou:

Founded in April 2005, Easou is a leading mobile Internet search provider in China with a strong focus in the lower tier cities. The Company is one of the earliest industry players devoted to addressing the fundamental behavioral differences between mobile devices and personal computers. Leveraging on Easou's proprietary technology developed over nine years, the company provides mobile Internet search services for users to discover and access the most relevant information online, which includes games, video, literature and music etc. In 2013, Easou entered mobile gaming market in the means of co-designing and exclusively publishing games for developers.

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