Baidu Gains Significantly in China's Search Market

We have posted iResearch's summary on China's Search Market here in May. Here is the figure by iResearch:

The iReseach figure shows that Baidu captured 26% of China's search market revenues in 2005.

Yesterday, Analysys published it's recent survey in China's search market:


From the above figure, Baidu has now captured 43.9% in China's search market revenue in the first quarter of 2006. It is 65% higher than that of 2005.

Since June 1, 2006, Baidu has in fact increased the minimum bid on many hot contested keywords. The new bidding rule requires that in order to appear on the first page of search result, a search marketer must bid higher than existing minimum price paid by other marketers. At the same time, some less contested keywords also saw lowered minimum bid requirement.