We provide our users with many channels to connect to information and services. In addition to our core web search product, we power several popular community-based products. These include Baidu PostBar, the world’s first and largest Chinese-language query-based searchable online community platform; Baidu Knows, the world’s largest Chinese-language interactive knowledge-sharing platform; and Baidu Encyclopedia, the world’s largest user-generated Chinese-language encyclopedia. Beyond these marquee products we also offer dozens of popular vertical search-based products, such as Maps, Image Search, Video Search, News Search, and many more. We power these through our cutting-edge technology, continually innovating to enhance these services. Over the past few years, rapid mobile adoption has dramatically altered the Internet landscape and opened up tremendous opportunities. In the mobile era, mobile search, maps and app distribution are large scale, powerful gateways that China’s users rely on to connect and discover. Mobile revenue comprised 60% of our total revenue as of Q1 2016, and mobile search accounted for approximately two-thirds of total search traffic on Baidu. As Baidu grows and evolves in the age of mobile, we are taking mobile search to the next stage by connecting users with both information and services, enabling users to complete closed loop transactions and providing local merchants across multiple industry verticals with an integrated online marketing and transaction services solution.

In addition to serving individual users, we also serve as a media platform for online marketing customers. Our online marketing business model is mainly based on a performance-oriented marketing platform for businesses to cost-effectively reach targeted Internet users. We offer performance-based online marketing services and display advertisements through both organic Baidu websites and our affiliated website partners (Baidu Union). Our affiliated Baidu Union partners direct traffic to us by integrating a Baidu search box into their websites and/or by displaying relevant contextual promotional links for our customers. The majority of our revenue is derived from performance-based online marketing services, whereby our customers pay on a cost per click basis when their paid-link is clicked through by users. Our goal is to give our customers an online marketing platform with a full range of marketing options, an extensive selection of tools for managing their accounts, and data for analyzing and optimizing ROI.