Easou’s users might have no PC, but they use mobile search, which is a large market for small and medium business mobile marketing. According to iResearch, Easou’s search flow on mobile search ranks No.1 in 2012Q2, taking 35.5% of market share, surpassing Baidu’s 33.8% and Soso’s 25.8%. At the end of September, Easou’s market share has risen to 37%. In May 16th, Easou launched “first mobile search marketing platform in the world”, providing mobile search for 220 million mobile internet users and helping 30,000 SMEs to promote on mobile by marketing to mobile users.
As CEO Wang Xi said, “Our users are mostly pure mobile users with weak PC experience. They don’t distinguish between Baidu and Easou only if we provide mobile search service at first. Mobile becomes a new information terminal, which needs a new search engine. In China we have 1 billion mobile users, while PC user base is only 300 million; such large gap will make a billion market.”
Easou’s upper stream is websites and browsers; Easou uses the mode of payment, profit-sharing as well as exchange of flows, which is better than Baidu’s heavy investment in a cooperative mobile industry. As apps can divert most of the flow on mobile, the typical “winner takes it all ” rule doesn’t apply; and as mobile has smaller screen, mobile search has to be more precise than in PC, which depends on new technology as well as cooperation. Easou’s target is tier-2 and tier-3 customers, which is differentiated from Baidu as well.
Easou promotes its business through launching free WAP website for SMEs in first year, as mobile business is hard for clients to understand at first, and the clients’ recharge rate is 90% high. Easou establishes a bridge between SMEs and targeted mobile users. This model is hard to copy, which depends heavily on the company’s long-term understanding of mobile internet. Easou’s philosophy is to pursue human desire in changing market, and its strategy is to focus on mobile technology, and philosophy is in prior to strategy.