Zhang Zhaoyang: Ma Huateng Wants To Be Superego!

"Sohu advertising revenue is achieving stable and sustained growth. The future development will be very good. It is very difficult for others to surpass."

Faced with the "provocation" of the outside world, Zhang Zhaoyang, chairman and CEO of Sohu's board of directors, pointed out yesterday.

The recent rise of video makes the company's advantage even more obvious.

On the face of it, big companies are diversifying, but the ultimate goal is to allow the largest users to stay longer in the territories owned by companies.

Zhang Zhaoyang stressed that the strength of the major companies is different. Sohu has its own advantages and is expanding to others' advantageous positions, while other companies are expanding to Sohu's advantageous positions.

At the end of last month, Tencent CEO Ma Huateng announced that Tencent advertising revenue surpassed Sohu in 2009, and stressed that the development of online advertising is related to the long-term strategy of Tencent.

A week later, Zhang Zhaoyang, who was not to be outdone, quickly responded.

He said that previous search engines and personal space were the dominant areas of other companies, and Sohu has grown very rapidly in these two areas.

Ma Huateng wants to go beyond the Sohu in 09 years. Zhang Zhaoyang said: "it's hard to make a mistake." in December 5th, Zhang Zhaoyang, President and chairman of the board of directors of Sohu, told Beijing media group that Tencent was hard to surpass Sohu.

In November 27th, Tencent Inc CEO Ma Huateng, in an exclusive interview with "finance and economics" reporter, said he hoped that the Internet advertising revenue of the company portal would surpass Sohu in 2009.

Ma Huateng also believes that Tencent's current influence has not yet reached his expectations and has a long way to go on the high-end channel.

Because Sohu is the official website of the 2008 Olympic Games, it will have an advantage in advertising. Ma Huateng hopes to surpass Sohu in 2009.

Zhang Zhaoyang responded today that companies are making different efforts and expanding to others' advantages. They are diversified on the surface and are actually doing one thing, that is, allowing more users to stay here.

Sohu has shown a good momentum in content competition. Internet advertising revenue is very enviable, so surpassing is very difficult.

Sohu's revenue in the third quarter of 2007 was $29 million 800 thousand, an increase of 42% compared with the same period last year. Tencent's net advertising revenue in the third quarter of 2007 was $19 million 300 thousand, an increase of 79.9% over the same period last year.

In December 4th, Sohu (Nasdaq:SOHU) announced the company's expected performance in the fourth quarter of 2007.

The total revenue is expected to increase from $55 million 500 thousand to $57 million 500 thousand, which is $2 million higher than the company's previous expectations.

The reason for the increase is that the online game "dragon eight" has outperformed expectations.

Tencent's advertising revenue is steady in the industry. Third, August 15th, Tencent announced its second quarter results in 2007. The most obvious is the online advertising business. The quarter's revenue was $15 million, an increase of 54.7% over the previous quarter, an increase of 82% over the previous year.

This means that the advertising revenue of Tencent has already opened up the distance from NetEase and is third of the industry.

In the second quarter of 2007, NetEase's advertising revenue was $8 million 600 thousand.

The portal of Tencent has ranked first in the industry.

Last year, Tencent increased investment in portal websites, hoping to turn traffic into revenue.

In the fourth quarter of 2006, Tencent's advertising revenue was $10 million 400 thousand, which has exceeded NetEase's $9 million 200 thousand, but the gap between the two sides is not obvious.

In the second quarter of this year, Tencent's advertising revenue was nearly two times that of NetEase.

The growth of advertising revenue of Tencent is far more than that of sina and Sohu, posing a threat to Sohu ranked second.

In the second quarter of 2007, Sohu's advertising revenue was $28 million 400 thousand, an increase of 24% over the previous quarter. Sina's advertising revenue was $41 million 200 thousand, an increase of 40% over the previous quarter.

Ma Huateng, chief executive of Tencent, said that the strong growth of online advertising was due to the seasonality, the improvement of execution and the increasing recognition of Tencent Internet platform. He said he would continue to increase investment.

Lv Bowang, an Internet analyst, said that this is the right strategy for Tencent to focus its strategic focus on online advertising.

The total revenue of Tencent in the second quarter was US $114 million, an increase of 12.3% over the previous quarter, an increase of 23.1% over the same period last year, and a profit of 43 million 900 thousand US dollars in the period, a 15.3% increase of 15.3%, an increase of 24.9% over the same period last year.

The proportion of advertising revenue to the total income of Tencent is not high, which is 13.2%, indicating that there is a great potential for future advertising.