Funding for 20 months the Godfather Tencent brought sogou search

On September 16, 2013, is memorable for the dog’s big day. On this day, sogou Sohu and Tencent jointly announced a strategic partnership:

Tencent to meet dog 440 million dollars, followed by fully diluted 36.5% per cent of sogou, this percentage will increase in the short term to around 40%.

To sell shares to Tencent, sogou father Zhang did not forget to slip a few words: “Tencent is China’s most successful and largest Internet companies, of course, it is very rich in resources, search dogs to continue independent development, Tencent’s social network and user resources search dogs will bring substantive support. ”

20 months later, Tencent has supported implementation of it?

New dog report card

“New dog, Oh I mean Tencent came” sogou staff busy network reporter from Lei Feng explained. New dog of the title has become a dog person consensus, and this “new” also appears in the search report.

In September 2013, the company purchased for $ 448 million dog 36.5% of the enlarged share capital and 20.6% of the right to vote. According to the trading price, sogou was valued at more than $ 1.2 billion. Recent media reports listed new search planned for the second half of the year to visit the us, valued at more than $ 3 billion. This means that Tencent capital in 20 months, sogou valuation increased by 1.8 billion.

Sohu reported dog has 5 consecutive profitable quarter. Search Mobile search revenues to the overall search revenue contribution from 10% to 22% a year ago. According to CNIT-Research figures, 2014 search mobile search market share has reached 17.8%, second only to the second largest mobile search engine Baidu, sogou search App retention rate improves 30%.

Tencent shares later, maximum lift for the new dog, showing on a mobile terminal and sogou search.

Tencent, what resources are available to search?

Industry sources as saying, “CEO Wang xiaochuan sogou is a very reliable product manager, and the independent development of protection dog”, because of this, Zhang to search when looking for a club that year had a lot of energy.

Judging from the present situation, Tencent did not seem to share the blessings around, instead of providing more resource integration. Sogou search staff told Lei Feng network, in the last two years, sogou search earth-shaking changes, there are two important milestones, Tencent shares, second, Kim Soo-hyun’s endorsement.

Initial plan was: in addition to “Search Maps” renamed “Tencent map” outside return to Tencent’s mother, and Soso QQ input method searches related to joint assets and personnel into the dog, entire business dominated by the dog, and to enable new dog brand. Cell phone Tencent, QQ mobile browser, mobile QQ, Tencent’s products as a diversion of sogou search portal. Search dogs owned by Tencent QQ, minimal mass, such as user groups, provide, including sogou input method sogou search products. Hello Kitty Galaxy case

Later, support becomes more and more. Micro letter separately to the platform data, sogou is open to the public, sogou online app search feature, the app for the first time to the public, “Extranet” showcase. Users can search dogs search queries related to the micro-public article. Wang xiaochuan thinks this is the first time, Baidu, sogou search did not. The same day, and Baidu, sogou search index skyrocketed to 17488.

Subsequently, sogou search launch App client, line local services section. All of the services are at its wings from Tencent: public comments, elong, Beijing East, 58 city and so on. Sogou search staff introduce us, because its funding, which all talk very fast and smooth, resources, reach out to.

Later, the app themselves launched a public search in the app, just when everyone thought the dog when talking about chicken app search, tiny letters will be all resources open to the public, sogou search, sogou search thus launched the “micro-letter headlines”, specifically designed for users with the public, content aggregation and recommendation. Micro-letter headline support through micro-account login, to recommend more precise micro-letter matches the user preference. Hello Kitty Galaxy S5 Case

In the report, such cooperation has been immediate. 2014 fourth quarter, sogou’s revenues rose 70%, a $ 18 million profit. Reason:

“Through the deepening of cooperation in mobile search to establish a real differentiation. The app as a strong ecological platform, its unique ecological resources are used by sogou, and continue to enhance the market competitiveness of sogou search. ”

Competitiveness of sogou search

Tencent’s development of strategic funding can be called the dog an important turning point after that, sogou search seems to get younger, and began to find themselves in a melee.

Sogou search staff told us about, search dogs to follow the path of differentiation, particularly evident in search. Baidu search no age stratification, however sogou search the target population was clear: young people, the tide, IN user groups, the majority of students, this is the dog chooses spokesman Kim Soo-hyun as an important reason.

Sogou search of the image of the industry, Lei Feng also interview a veteran search industry x, he was introduced to us, if you attach tags to the browser line, the some of sogou search is: company background, found micro-content. But for the extraordinary growth of sogou search, x-summary, which is created by Tencent join channel effect, but Baidu in China’s position, and accumulation of years of search, has been dumped too far second. Sogou search may be in the commercialization and customer satisfaction has improved significantly, but go up, market share is easy to hit, this is the search engine of the Matthew effect.

In addition, x introduction, while sogou search is known as the path of differentiation, and integrates micro-resources, but this is not enough to constitute a strong competitiveness, client news aggregators in search, Baidu can do 360 can also do, smarter search can, the threshold is not high, users do not mind whether the micro-contents of the letter public. Also, for a search engine, the main industry is the relevance of search results, this is the long tail needs require deep technical background. Based on this situation, search engine really hard to counter attack.

Sogou Sohu reported that the first quarter 130% mobile search traffic than last year, and mobile search traffic and commercialization capacity fast promote seemed good, but Tencent’s pulling power is likely to be exhausted. To take this momentum to remain here permanently, sogou search may need to find their stronger competitiveness.

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