Alibaba Group Holding Ltd (BABA) To Surpass Baidu.com, Inc. (ADR) (BIDU)
Alibaba Group Holding Ltd (NYSE:BABA) is set to gain the largest share of its revenue through mobile internet ads this year. According to the latest forecast by eMarketer, the company will set new records and surpass its competitors in net mobile ad revenue.
The online marketplace company is likely to surpass the revenue of Chinese search engine Baidu.com, Inc. (ADR) (NASDAQ:BIDU). The digital marketing company eMarketing in its forecast shows net digital ad revenues of various companies in China. The forecast includes surprisingly more number of companies this time. The forecast concerned itself around the net revenue generated through mobile ads and search. It predicts that Alibaba Group Holding Ltd (NYSE:BABA) will generate more revenue than Chinese search engine Baidu Inc.
Alibaba Group Holding Ltd (BABA) operates leading online and mobile marketplaces in the retail and wholesale business. The company has also entered in the cloud computing sector. According to eMarketer, the company registered record-breaking mobile internet ads revenue growth of 613.2% last year. However, this growth is predicted to diminish this year to 116.6%. The forecast says that the growth in revenue in year 2016 will only be 54.7%. The reducing rate of growth of digital ad revenues is predicted for nearly all major companies.
The net internet mobile ads revenue of Alibaba Group Holding Ltd (NYSE:BABA) will skyrocket to $4.75 billion compared to the $4.5 billion for Baidu.com, Inc. (ADR) (NASDAQ:BIDU). The company is proving to be a tough competition in case of digital marketing to its competitors such as Tencent, Sohu, Youku Tudou. This year it seems to have surpassed its biggest competitor, Baidu Inc. If the survey is believed, then the company will have nearly 34 % of market share, followed by Baidu at 32%. The revenue gap between these two companies will widen in 2016. Many other competitors will soon have a significant share of mobile ad revenues in the near future.
The recent forecast of growth for Alibaba Group Holding Ltd (NYSE:BABA) is no surprise as the company has registered consistent growth over the past few years. However, the staggering percentage of growth revealed by this survey is yet to be tested in the real world.
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