Tuesday, September 14, 2010

Breakthrough Nuggets Baidu Baidu PPC Union

"Internet traffic, only 4% of search traffic, the rest are browsing traffic, how can the latter further realized?" May 14, held in Sanya Baidu Union summit in the face from the country Hundreds of coalition partners, representatives, Baidu CEO Robin Li, chairman and threw out a question.

Robin Li said: As long as the remaining 96% of the cash flow of one-tenth or one twentieth, can bring considerable revenue. Robin Li said: Baidu Union is a platform for these cash flows.

Robin Li's plan is to use search platform Baidu liquidity, attracting more and more online media joined the alliance, which will search the media outside the flow of traffic into income, a gain in online media, while also achieving the appropriate profit Baidu .

Robin Li, Baidu Union in repeatedly stressed the role of the media platform, other than the flows of the underlying mining search, Baidu is quietly engaged in break away from PPC's "kidnapping" of gaining and preparation, Baidu Union, PPC advertising is a business not a perfect turn, before rapid growth, most likely starting point.

From the 4 million-400 million

Chose Baidu Union as a breakthrough, because of its staggering growth in revenue: Baidu alliance established in 2002, the year of membership is divided into only 4.13 million yuan, by 2008, that figure soared to 418 million, 6 years doubled 100 times, an average annual increase of 215%; which is divided into the year 2008 nearly 40 times in 2004, more than Baidu 2008 gross income is 30 times the growth rate in 2004.

Changes in the above figures, the proportion of the revenue Baidu Union, the rise year by year. This is the AdSense revenue share GOOGLE falling seems to form a sharp contrast.

According to statistics GOOGLE earnings over the years, AdSense proportion of total income in 2004 was 48% in 2005 -2008 were 44%, 39%, 35%, 31%, to the first quarter of 2009, the proportion of 30%.

Baidu Union cooperation network media play a vital role, but Baidu Union also include other carriers, software, Internet, operator.

Baidu Union, a broader meaning than AdSense. Among them, the software is a browser extension, video and audio player, download software personal user terminal, install Baidu's search plug-in; website promotion that online media alliances, Baidu ads on a variety of network media after the match, this ways the same pattern with GOOGLE's AdSense; cafes promotion refers to the Baidu search infiltration installed within the country's various Internet cafes; is the operator to promote mobile, telecommunications, Unicom, for mobile phone coverage of the interface.

To a Case Study in Internet cafes, Internet cafes channel for promotion of Baidu Joe Strong told reporters today, Baidu more than 130,000 Internet cafes in the country, already accounts for 100,000. Joe said: "The first Internet cafes in most of the young people account for the proportion of first contact with these people impressed by the search engines, they will become the main Internet users."

According to the latest CNNIC report, China's ratio of 39.2% and Internet cafes, Internet cafes become the second largest Internet site users, the current overall scale of China's Internet cafes Internet users has reached 9918 million.

Late last year, according to Analysys International's statistics, "Internet cafes are most frequently used search engine, the" Survey with 86.7% share of Baidu ranked No. 1.

Joe said this strong, Baidu in Internet cafes to promote the main promotion through Internet cafes and Internet cafes software alliance to promote two way service providers, which provide to the Internet cafe billing, network software such as the process dimension, embedded in Baidu's search engine, in by software service providers to bring traffic to generate revenue, Baidu and software service providers to share.

Promotion in the carrier, as the 3G's launch and the three major domestic carriers increased competition, Baidu has also accelerated the pace of cooperation. May 15, Baidu and Shanghai Unicom reached a 3G wireless search cooperation; in just the past 5.17 Telecommunication Day, Baidu and China Telecom's also the "Best Tone" reached a strategic cooperation, in accordance with the agreement, including the web, news , photos, paste it, know, MP3, etc., a Baidu search service will be integrated in a single software module, built in the "Best Tone" service platform.

The site media promotion, Baidu and AdSense are homogeneous model. Baidu's responsible for those who have not disclosed to reporters four kinds of ways to promote their respective share of income also declined to web media to promote the sharing ratio. According to media outreach site is divided into the total income of 1 / 4, light GOOGLE minimum 50%, the actual average ratio of nearly 80% of the share is estimated that Baidu last year obtained from the Web media to promote the income of about 125 million, which only last year, Baidu 3.2 billion of the total income of around 4%, far below the AdSense account for 30% of the total income GOOGLE ratio.

Proportion is still low, means that future growth of the space, Baidu only quietly to get rid of excessive reliance on the PPC as the status of a killer.

Realized that and paste it

Cai Hu, general manager of Baidu Union, said Baidu Union now has nearly 30 million customers, Baidu Media Alliance and the Alliance are more concerned about the media and customers docking, and a dedicated customer service to customers regularly submit performance reports for media analysis and advertising.

"Baidu Union, the future of another one worth a good dig, it's posted it and know." Cai Hu said.

With the bar and paste that information is increasingly becoming a tool for users to find the face of more and more "about Google, Baidu know" phenomenon, Baidu, vice president of commercial operations, said Shen Hao Yu, a feature of China's Internet is still currently online lack of a link is edited content, in fact a lot of useful information in everyone's mind, and people and very willing to contribute out of it and know the hot paste explain this pattern conforms to the user requirements.

Bar and know the content posted belongs to some 96% of non-searching, how about this part of the realization, Baidu also continued to explore. "This is part of a search behavior, and many are browsing behavior, we give some links to relevant content, sometimes it is accurate, but also put some ads, but relatively little piece of the world other than here in the realization of this search issue, not a good solution. "

Shen Hao Yu said that in this there are many places to explore, so that Baidu and media alliance partners benefit.

Marketing Reforms

Search Baidu Union, relying on cash flow than the same time, Baidu's brand advertising recovery, it has also become a positive dispersion PPC target.

According to friends, said Ye, Baidu's revenue growth this year, a big source of income is an old customer, Baidu's Dakehubu have framework agreements with brand advertising, part of advertisers last year, this year signed a framework agreement, in addition to many customers signed last year, was renewed this year, the framework of the signed up more than 60%.

In fact, Baidu in the renewal capacity of the customers began to strengthen. May 14 start, Baidu South China's Guangzhou, Dongguan, Shenzhen and other regions of the sales staff has a salary dispute and, some of the reasons is the signing of the testing standard as customers change, according to the relevant staff told reporters that in addition to the new appraisal standards increase the number of monthly signing, the customer's ability to do the required renewals.

In Baidu first quarter earnings release, Goldman Sachs analyst James Mitchell (James Mitchell) had asked to progress in the restructuring of the sales team.

Ye Peng said at the time, from the second quarter of last year, Baidu has taken several measures to improve the efficiency of sales, last year's second quarter sales to decrease in the number of employees, but on the other hand, Baidu is still concerned about the sales department strategic investment opportunities, particularly in the training.

May 14, Ye Peng told reporters, Baidu's operating system is constantly updated and adjusted, even though sales have been declining, but this has nothing to do with the 2007 compared to this effect is to optimize the organizational structure, Baidu will adjust the operational structure, but not exclusively, by the industry, such as the former three have now become four, the other is to adjust and avoid sector, improve staff efficiency.

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