How does the website make money?

Search engine company

In the professional search engine category, there is Baidu, which mainly operates search rankings, enterprise-level software, advertising business and bidding rankings in China. The growth of its revenue has been Benefiting from the further increase in website traffic, the continued expansion of the number of customers, and the scalable potential of the pay-for-performance PPC business model.

The original "bidding ranking" is a pay-per-effect online promotion method. After purchasing this service, a company registers a certain number of keywords, and its promotion information will first appear in the corresponding search of netizens. Results are in progress. Baidu charges according to the number of potential customer visits it brings to the enterprise, and bidding ranking accounts for 80% of its revenue.

Wireless value-added service companies

There are three wireless value-added service providers: Kongzongwang, Linkong and Hurray.

China Mobile's value-added service market started in 2002. After five years of rapid development, the overall market size reached 41.5 billion yuan in 2005. One type is to directly provide entertainment services, such as making friends, MMS, ring tones, games, ringtones, voice interaction, etc.; the other type is to provide information services, such as advertisements, introduction to specialized medical knowledge, weather forecasts, etc. Traditional SP services include SMS, voice, and ringback tones, while 3G-based SP services include WAP, online games, MMS, JAVA applications, etc.

In 2005, the development of China Mobile's value-added services market continued to slow down. In the context of the slowdown of traditional SMS services and the delay in 3G, many SPs competed at a lower technical level, eventually forming Vicious competition. In addition, the high-pressure policies implemented by China Mobile and China Unicom for value-added services such as WAP have also hit the SP industry. 2006 will be a critical year for wireless value-added services to break through.

E-commerce companies

E-commerce companies include Ctrip and eLong, which provide travel services, and 51job, which provides human resources services.

Tourism e-commerce provides free services to tourists and generates revenue from hotels and airlines. eLong is keen on business travel services, that is, collecting service fees from customers. For example, at the beginning of the year, it planned to save 10% for customers, but ended up saving 20%. The 10% promised in advance was free of charge, and the other 10% was divided 50-50. Ctrip focuses on self-guided travel. The service content of self-guided tours ranges from simple "air tickets + hotel" to "air tickets + hotel + airport transfers + selective travel content" and other different levels. It mainly relies on commissions from hotels and air tickets to obtain profits.

51job is the first professional human resources service organization in China that integrates the advantages of multiple media resources. It integrates traditional media, online media and advanced information technology, plus a team of experienced professional consultants to provide a full range of professional human resources services including headhunting, training and evaluation, and personnel outsourcing.

Online Game Company

Shanda Network and The9 are the leading online game operators in China. Shanda currently provides operation services for more than 10 online games, including Miracle II, and occupies about 1/3 of the market share (only referring to large-scale role-playing online games). The9 has the exclusive rights to operate "World of Warcraft" in China.

The profit model includes game time billing and value-added application services (such as providing some special props in the game for players to purchase with "Yuanbao", and "Yuanbao" must be purchased by players with RMB).

Advertising companies

Advertising companies include Focus Media, the founder of China’s outdoor TV advertising network, and the first Chinese pure advertising media stock to land on the Nasdaq. Clear strategic positioning in focused markets is the core of Focus Media's business model. Its advertising business includes commercial buildings, store advertising, etc.

China’s new media companies listed on Nasdaq are the epitome of China’s new media industry. There are three main profit models for media. One is to make money from content, such as SP companies, which purchase content or even rent content, and sell it to mobile phone holders through strong online and offline promotion; magazines pay for their print editions This is the case for both subscriptions and e-subscriptions; the second is to make money from advertising. For example, portals make money by selling text links, banners and other online advertisements, search engine companies make money by bidding rankings, and online recruitment service companies make money by classified recruitment advertisements. etc.; the third is to build business platforms through the Internet to reduce operating costs, such as eLong and Ctrip.com, which provide travel services, hotel and air ticket bookings; Shanda and The9 City provide gaming services (if there were no Internet technology, people would participate The cost of multiple role-playing games will be huge); Dangdang.com, which provides online shopping services.

Among the Chinese new media companies currently listed on Nasdaq, the profit models are a combination of the above two or three. With the development of China's society and economic growth, consumers' demand for information and enterprises' demand for advertising have shown broad prospects, and the new media industry will also usher in a blowout growth. The main driving force for the development of new media comes from the integration of markets that were fragmented into different geographical locations, different media forms, and different content themes under the original policy system into one large market. We predict that new media targeting different information formats (text, graphics, videos), different content themes, and different audience groups will be the future development trend of the media industry.

(Author: Zhan Zhengmao and Liu Chenzi/School of Journalism and Communication, Tsinghua University This article was published in "Media" 2006.4)

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Table 1: Overview of Internet portal companies listed on NASDAQ (sorted by market value )

Company name Market value Total revenue Price-earnings ratio Business overview

NetEase 29.072.118.92 Online games (81.4%), advertising (14.2%) wireless value-added and others (4.3%), wireless value-added Business has declined due to fierce market competition, and the business center has shifted to online games

Sina 13.251.93626.93 advertising (43.9%), wireless value-added (50.7%), advertising and mobile value-added businesses both lead NetEase and Sohu, basically occupying the same share Proportion

Tom10.181.72116.73 wireless value-added (94.1%), advertising (5.4%), its wireless Internet services are in a leading position in the mainland market

Sohu 8.581.08323.40 advertising (65.5 %), wireless value-added (24.3%), e-commerce (3.5%), the main income comes from advertising business, including brand advertising and search engine advertising brought by the search engine "Sogou"

China.com 4.442.47625.12 Software development (82.5%), China.com (17.5%), software revenue comes from CDC Software Company

Finance 1.060.07521.56 China's leading financial and financial information provider, and the world's largest One of the Chinese financial websites, its revenue mainly comes from advertising business

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Table 2: Overview of professional search engine companies listed on NASDAQ

Company name market value total revenue Price-to-earnings ratio business overview

Baidu 15.960.39656.78 Internet marketing (96.2%) includes search rankings, enterprise-level software, advertising business and bidding rankings, etc.

Note: Market value and total revenue units are both is US$100 million, the same below

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Table 3: Overview of single wireless value-added companies listed on NASDAQ (sorted by market value)

Company name market value total revenue price-earnings ratio Business Overview

Zhongkong.com 4.080.77512.40 provides multimedia messaging (MMS), WAP, JAVA and other products and services. Business revenue based on 2.5G accounts for 72.7%, and business revenue based on 2G accounts for 27.4%

Hurray 1.900.6248.69 provides content applications and comprehensive wireless value-added services for mobile phone ringtones, picture downloads and wireless entertainment services Development, integration and services of software platforms. Business revenue based on 2.5G accounted for 57.5%, revenue based on 2G accounted for 32.2%, and business revenue from software and system integration services accounted for 10.1%

Lingtong 1.770.73612.21 mainly involves text messages (SMS), multimedia information Services (MMS), WAP, IVR and RBT, including many wireless product businesses. Among business income, text message (SMS) income accounted for 62.6%, 2.5G and audio-related income accounted for 33.5%, and MMS, WAP, and JAVA game income accounted for 38.8%

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Table 4: NASDAQ listed e-commerce company

Company name Market value Total revenue Price-earnings ratio Business profile

Ctrip 11.970.646529.74 provides hotel booking, air ticket booking, vacation product booking, travel information inquiry and discount merchant services. An all-in-one comprehensive travel service company. Hotel bookings (69.7%), air ticket bookings (31.3%), vacation product bookings (4.3%)

5154.090.62423.84 revenue sources include print advertising, online recruitment, executive search and human resources services. Print advertising (54.7%), online recruitment (30.7%), executive search (3.9%), human resources services (10.6%)

e龙1.72NA100.50 business scope covers global hotel and air ticket booking, Leisure and vacation products, special merchants, group travel and other services.

Hotel booking (72.6%), air ticket booking (12.3%), others (15.1%)

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Table 5: Online gaming companies listed on NASDAQ

Company name Market value Total revenue Price-to-earnings ratio Business overview

Shanda 9.392.3517.68 Casual games (22.6%), MMORPG (64.0%), online advertising and others (13.4%)

The Ninth City 5.740.57613.56 The annual growth rate of 1239% in 2005 ranked first among all companies, and its revenue mainly came from World of Warcraft (99.6%)

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Table 6: NASDAQ listed advertising companies

Company Name Market Value Total Revenue Price-Earning Ratio Business Overview

Focus Media 22.190.68229.04 Commercial Building Network currently covers 54 cities across the country, with nearly 35,000 LCD screens, covering tens of millions of middle- and high-income people every day .

Among its business income, commercial venue advertising network income accounts for 84.1%, and on-site advertising network income accounts for 13.4%. Most of their money is divided into the following two types

1: Promotional advertising

2: Selling billboards is mainly for advertising to make money