How does Baidu make money?

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The leaves of 1997 2005-9-3 16:36

How does Baidu make money

Charging standards:

1. The minimum prepayment for PPC promotion fee is 1,500 yuan. There is no limit on the amount you pay. Your payment will be deposited into your registered PPC account. , when a potential customer clicks to visit your website through PPC, Baidu will deduct the corresponding fee from your account.

2. The starting price per click is 0.30 yuan. If multiple websites bid for a keyword at the same time, the search results will be sorted according to the high bid per click.

3. There is no limit to the number of keywords that each user can submit. No matter how many keywords are submitted, they will be charged according to the actual number of clicks on the website.

4. The bidding ranking click billing system counts clicks every 15 minutes and deducts the corresponding fees. You can log in to the bidding ranking customer management platform at any time to check the click status.

5. We provide detailed click statistics reports for each customer, and you can log in to the management platform to view them at any time.

6. The annual professional service fee is 600 yuan. Baidu provides you with consulting services, account opening services, management services, and reporting services.

Baidu seems to also provide technical support for search engines for some portal websites

This can also be charged

Reprint

[[i ] Last edited by Youyou’s Mommy on 2005-9-4 at 09:35 [/i]]

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Baidu's popular trade secret bidding ranking boosts small and medium-sized enterprises

China Financial Network Post a comment View comments

November 14, 2005 at 8:30

2005 was the year of Baidu in China’s IT industry.

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On August 5, Chinese young man Robin Li founded Baidu was officially listed on Nasdaq in the United States. The world's largest Chinese search company created a "Yao Ming-style legend" in the U.S. stock market: the stock issue price was US$27, and it opened with a gap of US$66 when it was listed. , the stock price reached a maximum of 151.21 US dollars on the first day of trading, and closed at 122.54 US dollars, an increase of 354%.

At that time, Baidu had become the greatest Chinese company on Nasdaq.

Baidu has become a myth in the United States: it has created “the largest first-day increase for a newly listed company in the U.S. stock market in the past five years, has entered the top 10 stocks with the highest earnings on the day of listing in the history of the United States, and is the first foreign stock listed in the United States. The three major records of "the one with the best returns among enterprises".

For this reason, the closing bell of the Nasdaq stock market that day was rang by the president of Baidu.

In the history of CNBC, co-founded by American media giant NBC and Dow Jones, the record for a company's CEO to be on camera twice on the same day was set by the president of Baidu.

In an era when search dominates the world, Baidu actually changed the strategic structure of China's Internet within one year. Currently, Baidu is the world's largest Chinese search engine, China's largest online marketing platform, the world's largest Chinese website, and China's leading Internet company.

On October 27, Baidu’s third quarter financial report showed that its total revenue was 88.9 million yuan, an increase of 27.6% compared with the previous quarter and an increase of 174.4% compared with the same period last year.

Many people want to know, how does Robin Li’s legendary company make money? It is an online bidding ranking. In fact, it was Baidu's bidding ranking that made thousands of small and medium-sized enterprises in China famous overnight.

This is the secret of Baidu’s success.

Baidu’s popular secret weapon

PPC becomes a business model

When investors around the world were crazy about a Chinese company called Baidu, they took a fancy to , in addition to Baidu's firepower suppression of Google in the Chinese world, its most important money-making weapon is Baidu's first domestically promoted business model - bidding ranking.

In the past four years, PPC has helped tens of thousands of Chinese small and medium-sized enterprises become famous through online marketing.

In May 2005, CCID Evaluation released the "CCID Evaluation Report" based on the survey results of more than 1,800 companies in 18 cities across the country: In China's economically developed areas, 94.78% of companies Understand Internet marketing, 50.14% of companies recognize Baidu's bidding ranking service.

The company led by Robin Li is taking the lead in getting involved in localized sales. As China's own search engine, Baidu is more familiar with the Internet habits of Chinese companies. Previously, at the first Internet Marketing Conference hosted by the China Electronic Information Industry Development Research Institute, Baidu was named "the most satisfactory Internet marketing platform for Chinese small and medium-sized enterprise users" because of its bidding rankings that have helped tens of thousands of companies succeed.

The person in charge of Baidu explained that "bidding ranking" is a payment-based online promotion method, which was first launched by Baidu in China.

After a company purchases this service, by registering a certain number of keywords, its promotional information will first appear in the corresponding search results of netizens. For every potential customer visit, the company only needs to pay a minimum fee of 3 cents. For example, if a company registers the keyword "electrical equipment" on Baidu, when people search for the information "electrical equipment" online, this company will be found first, and Baidu will visit the company based on the potential customers it brings. Quantity charges apply.

Let people find your company online

Baidu takes over half of Internet marketing

In the evaluation report of Saidi.com in May 2005, Baidu has Won half of China’s online marketing market. For new search operators, this means that their development space has been drastically compressed.

“We hope there is a way, instead of trying to find customers like a needle in a haystack, but letting potential customers with actual needs come to us.” Baidu’s bidding ranking service customer, Beijing Andingmen Hospital of Traditional Chinese Medicine Dean Liu Wenhua said.

At present, the biggest difficulty for a large number of small and medium-sized enterprises in Beijing, Shanghai, Guangzhou, Shenzhen and other places is to find customers. In the past, they often looked for business opportunities through advertising, mailings, telemarketing, etc., but the results were not very satisfactory.

Baidu PPC has completely rewritten this model. Liu Wenhua feels the many advantages of Baidu PPC: "I value the three points of Baidu PPC most. First, Baidu is the world's largest Chinese search engine. It has extensive dissemination power in the Chinese world; secondly, Baidu's bidding ranking is based on pay-per-performance, which is the lowest average cost method for acquiring new customers; thirdly, it is highly targeted, and a single search command can directly find a large number of potential customers.

”

Currently, Baidu has two core agents in Beijing, one is Beijing Zhenlong Advertising Company and Beijing Jinghe Xinda Technology Development Company. Compared with their peers, these two companies are creating a An emerging industry, promoting bidding rankings for a US-listed online search company

It is understood that Jinghe Xinda and Zhenlong Advertising have recruited a large number of senior online marketing consultants and professionals, and Baidu hopes to do so. This elite team can make a name for themselves in Beijing and completely change the marketing methods of small and medium-sized enterprises in Beijing.

Small and medium-sized enterprises are turning to bidding rankings

Going for gold in Baidu

For Yunwang, a well-known e-commerce company, Baidu has rapidly increased its influence in Beijing.

Yunwang, founded in 1999, is the first e-commerce company in China to implement online transactions. A business company that mainly deals in digital products, including digital phone cards and other prepaid products, as well as digital products and services such as air tickets.

Currently, Yunwang has become the largest virtual card online agent in China. He has been quietly keeping an eye on Baidu’s bidding rankings for a long time. “If traditional promotion is used, a large number of advertisements will be used to cover all these products, which is time-consuming and labor-intensive. However, the adoption of Baidu PPC gives us new choices. "said Zhang Luying, marketing manager of Yunwang Company.

Zhang Luying is an Internet marketing expert and has her own experience in using bidding rankings: First, there is no limit on keyword registration, so It is widely searched online. Yunwang now has more than 150 keywords registered on Baidu, and its number of phone consultations has even doubled.

Zhang Luying feels that bidding ranking is another major advantage. It’s cost-effectiveness. Previously, Yunwang Company had also done online search marketing. It quietly calculated the experience of finding customers with every search company and found that Baidu’s revenue was much higher than other promotion methods.

" Since doing this bidding ranking, our telephone consultation volume has doubled. Now a large number of orders come from the Internet. Many people discovered us from Baidu bidding ranking. " Manager Zhang of the Marketing Department of Beijing Sinuo Xianglun Company said excitedly.

Beijing Sinuo Xianglun Technology Company, as the authorized training center of Beida Jade Bird Company, is a well-known IT education institution in China. How to put your own Promoting their advantages and highlighting the company's brand awareness is their main promotion goal. This company has found a way to make money through the "pay-by-performance" keyword service.

Manager Zhang said, The most valuable thing about Baidu's bidding ranking system is that it is very targeted, so it can bring a very targeted user group to your company, and the possibility of these people becoming students is very high, which greatly saves the company's promotion costs. , enabling the company to concentrate its superior forces, funds, and energy on operations, and use limited resources on the cutting edge.

Rewrite marketing lesson plans

Experts’ high evaluation bidding rankings

The business model of bidding ranking created by Baidu led by Robin Li has become a lesson plan for academic research.

“In the future, business owners will turn more attention to online marketing methods. . The future development direction of online marketing will be effect-oriented, and the payment-by-effect method will be favored by many small and medium-sized enterprises. " Professor Jiang Xuping, an MBA tutor at Tsinghua University School of Economics and Management and a well-known online marketing expert, said.

"As long as potential users do not visit your website, then you do not need to pay for this kind of promotion, effectively saving advertising investment. The other half is wasted. Lu Benfu, deputy dean of the School of Management of the Graduate School of the Chinese Academy of Sciences, believes that bidding ranking is a highly optimized resource allocation method and an excellent personalized information service model.

Niu Haipeng, associate professor of the Business School of Renmin University of China Said: “For companies that use PPC for promotion, this model is very straightforward: first, the people who see your advertisement are the customer group you want. Second, not only do you want them to see it, but you also want them to enter your website to browse the information you provide, so that you have to pay.

In other words, you only pay for it if it produces results. As an ideal promotion method, PPC solves many problems in traditional advertising. "Morning News reporter Zhang Xuguang

News background

Traffic -

The lifeline of search engines

Internet experts believe that any kind of Internet The promotion model needs to be supported by a large amount of traffic. Most small and medium-sized enterprises doing online marketing have two characteristics: first, the target customer base is scattered, and it is difficult to know who will be their customers. The existing marketing network is difficult. To cover these customer groups, customers need to actively come to you; secondly, the marketing budget is not high, and the input-output ratio is very important.

These two characteristics determine the importance of traffic to the online marketing platform to a large extent. The importance of effect. When doing online marketing, small and medium-sized enterprises must find an online marketing platform with large traffic, so that they will have a greater chance of winning potential customers and improve the input-output ratio of online marketing.

According to statistics from third-party website Alexa.com, since early July this year, Baidu’s user traffic has surpassed Sina and become the world’s largest Chinese website.

Online marketing model——

Purchase ranking and fixed-fee ranking

Peer ranking is a payment-based promotion method. It mainly involves companies buying keywords in search engines. When users search for information on these keywords, the company's promotional content It will appear in front of users. This method generally pays according to the effect of user visits, and companies can bid for rankings in search engines.

Fixed fee rankings are available. A promotion method that charges a fixed fee, which can be a monthly fee or an annual fee. That is, the company purchases fixed rankings for keywords in search engines. When users search for information on these keywords, the company's promotional content will appear. The fixed position of the search results. Service providers that provide such products include Sina.com

Opinion link

Xu Bin, marketing director of Qianbaidu Huafang chain store:

In the past, we actively searched for dealers and partners to find franchisees. This method of promotion was too time-consuming and labor-intensive, and the success rate was very low. Later, by using Baidu bidding ranking, we did not have to travel here and there. More customers have found us directly, and nine out of ten customers who come to us have needs, and the signing rate is much higher. The bidding ranking has expanded our contact with dealers and greatly reduced marketing costs. .

Miao Leijiang, head of promotion at China Traditional Chinese Medicine Expert Clinic:

At the beginning, we always had a distrustful attitude toward online promotion. However, we later chose Baidu’s bidding. As the main method of online promotion, Baidu has a lot of traffic, and its two major advantages of pay-for-performance and strong targeting of potential customers are very attractive to us. Facts have also proved that Baidu's bidding ranking has indeed brought us a lot of potential customers.

Liu Wenhua, President of Beijing Andingmen Hospital of Traditional Chinese Medicine:

We have been using Baidu’s bidding ranking since 2003. Because the effect is very good, we have always regarded Baidu’s bidding ranking as our main promotion methods. There are three things that I value most about PPC: First, as the world's largest Chinese search engine, it has wide coverage; second, its PPC is paid based on performance, and among similar products, it has the lowest average cost of acquiring new customers and a high return on investment. One method; the third is very targeted and can help us directly find potential target customers.

Wang Changjiang, CEO of Beijing Haozhu Management Consulting Company:

When we use bidding ranking on Baidu, we usually use keywords, such as headhunting, headhunting company, recruitment, only for talents in need. Will click, therefore, the target customer positioning is very accurate. And it's global, very broad. There are many talents in our company's resume library from the United States, the United Kingdom, Australia and even South Africa. You can also use Baidu PPC to control yourself. If you feel that the cost has been too high recently, you can go to the backend to lower it at any time.

Another point is that it can improve our brand awareness. When users search for information about recruitment and headhunting, Haozhu Headhunting ranks at the front, which greatly improves our company's brand awareness.

Wu Hui, Marketing Manager of Babaibai Interactive Technology Company:

We have done a survey and found that white-collar workers in many domestic office buildings are more accustomed to using Baidu for search. Its user group happens to be the consumer group we want to develop. In this case, our use of Baidu PPC will be very directional. Secondly, Baidu's bidding ranking service does not limit the number of keywords, so we can obtain a large number of keywords without increasing additional investment in the early stage, thus bringing more access rates and potential user groups. We only need to pay promotion fees according to the results, so this is a very reasonable and easy to accept method.

Liu Jizhong, general manager of Beijing Meijiemei Technology Co., Ltd.:

We have also invested in online marketing platforms, but the results are average. After using Baidu, the average daily visits to our website suddenly doubled than before. When our keywords were at their highest, more than 680 were registered, and now they have gradually adjusted to more than 400. The average daily effective visit rate is in the thousands. times or more.