Baidu’s Revenue component:
• Online Branding
Baidu charges those who put advertisement on websites through its sales team and its strategic partners Baidu Unions
• Paid Search: Pay Per Click (PPC) and Power Link (PL)
The Paid Search in China is developing fast (Refer to Exhibit ), while Paid Search is Baidu’s fastest growing online auction-based service. With PPC, large-sized advertisers pay only when their potential consumer clicks on the keywords of their business or link of advertisement website from Baidu’s search engine page. The search results are demonstrated on the left side according to the ranking they paid. PL is Baidu’s tailor service to allow SMEs customers pick one keyword and create a fixed ranking on the right side of the searched results. With both PPC and PL, Baidu could generate profits from both Large-sized and SMEs in a great extend. Beginning from the second page, the ranking is not paid results but natural ranking of the keyword itself.
• Baidu Japan
In the first quarter of 2007, Baidu opened its search engine in Japan. Although so far Baidu has not generated any revenue with continued investment, Baidu still see great room in Japan as Yahoo and Google left blank more than 20% of market share
• Baidu C2C
Baidu has already put its online C2C platform into place, but it is still unclear whether this will help it generate much revenue as its biggest competitor, Alibaba has already dominated in the C2C market.
I China is a growing market with more people access to internet China is still a huge growing market at a primary stage for online marketing. With a population of more than 1.6 billion, its penetration of internet use is relatively low (19.1% in 2008), compared to 72% and 69% in the US and Japa ...