Brief Guide to

China Search Marketing with BaiduChina Search Marketing with Baidu

April 14, 2008

Rocky Fu

Whitepaper

www.RockyFu.com

Table of Contents

� Search Engine Preference In China� Top Search Engine Brands� Different Preference In Cities� Chinese Search Engagement

Baidu UI� Baidu UI� Baidu Pay-Per-Click� Baidu Pay-Per-Year Advertising� Baidu Brand Advertising

www.RockyFu.com

Table of Contents

� Baidu Content Network

� Baidu Complete Traffic Advertising

� Baidu Video Advertising

� Search Operation in Baidu� Search Operation in Baidu

� Baidu Agency

� Baidu Customer Support

� News & Plans of Baidu

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Search Engine Preference In China

1st Choice Search Engine

Sogou.com

SinaYahoo Baidu

Google

Sogou.com

Baidu

Yahoo Baidu

Google

Sogou.com

Yahoo

Sina

Yodao.cn

soso.cn

others

Source: CNNIC.cn, Sep 2007

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Top Search Engine Brands

Top Brand For Search

20% 1.24%

47.72%

42.32%

20%

20% 1.24%

Baidu Google Sogou.com Yahoo Sina

Source: CNNIC.cn, Sep 2007

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Different Preference In Cities

Search Preference Difference In Cities

60.00%

70.00%

80.00%

90.00%

% 1st Choice SE

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Tier 1 Tier 2 Tier 3

Cities

% 1st Choice SE

Baidu

Google

Source: CNNIC.cn, Sep 2007www.RockyFu.com

Chinese Search Engagement

Source: Enquiro Research, 2007www.RockyFu.com

Chinese Search Engagement

� “So it seems that Google outperforms Baidu, since the area of greatest promise (the Golden Triangle) is receiving the lion’s share of fixations; receiving the lion’s share of fixations; whereas the Baidu page is very Scattered.

Source: Enquiro Research, 2007

http://www.enquiroresearch.com/chinese-search-engine-engagement.aspx (registration required)

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Baidu UI

www.baidu.com

• News

• Web search

• Post-it

• MP3

• Picture

Paid search service

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Pay Per Click

� Organic listing and paid listing are mixed

“Promote” (paid listing)

“cell phone”

Pay per click

are mixed

“Cache”, organic SERPwww.RockyFu.com

Pay Per Year (PPY)

� Called “Fire Zone”, with a different management backend, listed on the right of the search results

� Paid for a fixed fee for a year � Paid for a fixed fee for a year per keyword

� Not popular among advertisers

Note: PPY ads are on the right, but not all ads on the right are PPY; some are PPC.

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Baidu Brand Advertising

� Triggered by brand terms

� Both left and right (next page)

Click Through � Click Through Rate up to 75%

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Brand Advertising (Right)

� Animated Image

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Baidu Union (like AdSense)

� Baidu’s contents network

� Website Publishers

� Software Developers

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Baidu Complete Traffic

� Covers different sections in Baidu.com� Mp3 (daily PV: 200m)

� Post It (daily PV: 120m)

Simple platform to chat, discuss; post anything.

� Baidu Answers (daily PV: 60m)� Baidu Answers (daily PV: 60m)

� Image Search (daily PV: 80m)

� News (daily PV: 10m)

� Qianqian (audio player software)

30m users

� Banner / Text links

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Video Advertising: Baidu TV

� Advertising on Baidu union websites

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Search Marketing Operation

� Min. Spending: RMB2,400 (US$343; initial deposit)

� No Mgmt tool like AdWords Editor

� One account, one campaign� One account, one campaign

� Can have different Ad Groups

� Simple reporting

� Daily spending report

� Keyword spending report

� Daily Keyword spending report

� Daily Group Performance Report

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Baidu Agency

� Min. registered capital: half million yuan (US$70K)

� Dedicated to PPC with Baidu

� Only one per location / cityUnless you are advertising agencies

� Bad WOM� Bad WOMtoo many sales calls from Baidu agencies

� API: limited, lousy

� Mgmt Fee: RMB600 per year (US$84)

� Cash rebate from Baidu depending on the spending levels

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Customer Support

� “no support” unless you are paying big…

� Monthly spending min: RMB100,000

� About USD$14.2k or SGD$19.5K� About USD$14.2k or SGD$19.5K

� Managed account

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What’s Next

� Planning C2C website like eBay

� Testing Instant MessengerBaidu Hi

� Partnered with Omniture to reach � Partnered with Omniture to reach more MNC clients

� Launched audio searchPowered by people

www.RockyFu.com

The End