Easou thrives in China's fast-growing second- and third-tier cities. Many users in those cities are mobile-only internet users or those who do not regularly use personal computers. Mobile search has different priorities compared to PC search, according to Frank Wang, Chairman and CEO of Easou.
"PC search usually focuses on information and research. But mobile search tends to focus on personal needs, and is based more on location," said Wang.
The driving forces behind the growth of mobile advertising are the rapid penetration of cheap smartphones and improved 4G networks, said Wang. The higher number of users is attracting both first-time mobile Internet advertisers and others migrating from PC to mobile.
Easou capitalizes on that trend by focusing on business-to-consumer (B2C) advertisers that provide goods and services targeted at China's growing mobile user base, such as education and healthcare providers. Easou's advertising platform, called "The Dragon's Den," lets advertisers set their budget and select where they want their advertisements to be placed. They can choose between search results or place text link or banner ads on the Easou Union, a network of popular websites and apps that run Easou ads. Advertisers can also set the geographic location to show ads in a specific city, province or across the country. Finally, advertisers can also select the duration of the campaign.
Over 90 percent of Easou advertisers are small and medium enterprises (SMEs) that are advertising on mobile Internet for the first time, unlike Baidu, whose mobile advertisers are mostly larger companies shifting their advertising budget from PC to mobile.
"Right now we're seeing most of our growth from SMEs," said Wang. "But next year we will also benefit from the increased budget of brand advertisers to mobile Internet."