Baidu, however, will see better success either through partnering or launching separate companies to handle products outside of search, Natkin said. The company did so with Qiyi.com, a Chinese online video site that launched in April 2010, which Baidu owns a stake in.

"I think social networking is an area that's crucial for Baidu to develop more fully," Natkin said. "But it would likely do best to follow the same model it has employed for online video and look for a company outside of Baidu that has a proven track record and can partner with or acquire."