Revenue of China's search engine companies attained 64.34 billion Yuan in the first half of 2019. The revenue was 33.76 billion Yuan in the second quarter of 2019. iResearch views that under the influence of market environment and new media, the growth of search advertising, the main business of search engine companies, decelerated. However, empowered effect of search advertising will be enhanced in the advertising and marketing field in the future with the maturing of AI application technology. It can be seen in more precise individual advertising placing and higher monetization efficiency of AI. and the potential of news feed ads will be further unleashed. Meanwhile, search engine companies ramps up efforts to develop AI, which also opens huge commercial space for other application scenarios.
In the second quarter of 2019, search advertising revenue reached 22.3 billion Yuan in China, rising again after a fall in the previous quarter. However, its year-on-year growth saw a slight fall, which implies a trend of search advertising tilting to news feed ads. In fact, news feed ads revenue surpasses affiliate ads revenue and becomes the second largest revenue source of search engine companies.
In recent years, search engine companies made great efforts to build the content ecology. iResearch views the underlying logic of search is that users expect to rapidly obtain quality contents in line with expectation to finish the accumulation of quality contnets. Therefore, it is very important for search engines to break information isolated island.