Friday, September 30, 2005

Some old Data

Baidu Becomes Largest Web Business Platform

On June 3, 2005, CCIDnet (the most reliable IT research firm in China) released a research report which includes 18 of the most developed large citis in China. It reported that 50.14% businesses have or in the process of purchasing Baidu's paid search ranking services. Google came in at 24.13%, thus pushed Baidu into the top spot as a web business platform.

CCID reported, among Chinese companies with online sales, 84.5% of them are using paid search, 6.69% are using listings on web portals, and 3.8% are using emails as a way to expand their web businesses. Most acceptable way of web expansion also ranked search engines at top with 75.3%.

In the last few years, web site construction was the first step. However, to attract new customers, they must expand the reach of their web sites. The best way is to join the search engines. According to the report, expanding online sales through paid search is also the most favored way for businesses.

The main two services provided by paid search are auctioned rankings as well fixed-price rankings. Auctioned rankings based on purchased keywords through search engines. When users typed in the keywords, the paid web sites will appear. And the fees are usually based on clickthroughs. Businesses can bid on keywords to be listed in ranks. The service providers are Baidu, Google and Yahoo.China.

The fixed-priced rankings can be purchase using monthly or annual payments. Companies can buy their fixed position in the ranks. When users search the keywords, the paid content will appear at the fixed positon in the ranks. The service providers are Sina, Sohu, HC360, Alibaba as well as 3721(merged into Yahoo.China).

According CNNIC's data, currently, there are about 660,000 web sites. There is clearly a surging trend on using paid search to expand online sales.

Pei Yuan

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