Chinese internet giant Baidu is diversifying away from its single-search advertising business into online marketing consultancy and video content services in Thailand as it strives to create new, more profitable revenue streams.
The Beijing-based company expects its newly launched cross-border marketing platform for Chinese tourists, called Baidu Access, to help its Thai operating unit double its revenue in 2017, said Patcharaporn Sirisapwong, marketing manager of Baidu Thailand.
Baidu Thailand is also in talks with two local media and entertainment giants on the possibility of setting up a joint venture to provide a platform for broadcasting entertainment-based video content service. A deal on the venture is expected to be settled by 2018.
The potential entertainment video content service will be either free or based on pay-per-click, she said.
Ms Patcharaporn said the company is upbeat about its new marketing consultant service, which is expected to contribute up to 80% of Baidu Thailand's total revenue this year.
Unofficially launched in December last year, the online marketing consultant service generated 30% of total revenue for Baidu Thailand in its first three months of operating, and is expected to contribute up to 80% of total revenue this year.
Based on internal reports, Ms Patcharaporn said almost 10 million travellers from the Chinese mainland visited Thailand in 2016 -- over one-third of the country's total inbound arrivals -- and bringing tourism earnings of US$6.38 billion to Thailand.
Some 59% of the total were free independent travellers with mid-to-high income, while the remaining 41% were part of group tours.
Thailand is one of the three most popular destinations for Chinese tourists, alongside Japan and South Korea.
A total of 120 million Chinese travelled overseas in 2015, spending $194 billion across the world, topping the list of international outbound travellers for the third year in a row.
Miss Patcharaporn said Baidu Access is specially created for Thai businesses wanting to promote their products to Chinese tourists, particularly independent travellers who seek information to plan their own trips.
"Given that our largest Chinese-language query-based searchable online community platform coincides with our largest user-generated Chinese-language encyclopedia, we have the capability to provide information all over China," she said.
Baidu is the top search engine in China, with 90% of the Chinese internet population of 730 million using Baidu. The Chinese search engine firm ranks fourth in the global market.
Baidu Access covers services ranging from market analysis, brand influence and sales, and marketing channels. The service charge for its marketing consultant services starts from 30,000 baht to over 1 million baht, depending on the level of online marketing optimisation.
Target customers for Baidu Access include hotels, restaurants and real estate companies.
Developed by Baidu Thailand's in-house team, Ms Patcharaporn said Baidu Access is being made available in Thailand first.
She said the company plans to roll out the second phase of Baidu Access service in April, providing information about Thai products and services produced by small and medium-sized companies in Thailand.
When asked about rumours that Baidu will provide newswire service, Ms Patcharaporn said Baidu does not yet have formal plans.
