Baidu Keyword Costs Increase

Baidu World held in Beijing this month united Baidu with its key customers and partners and also showcased Baidu's latest products. Most partners, including advertisers, found Baidu offering superior ROI to Google in spite of the fact that Baidu's keyword costs have increased and are close to that of Google. Key takeouts from the event included: 

• Baidu has 6x the traffic of Google and similar conversion rate at 8%.
• Revenue growth is being driven by the conversion of new customers into paying customers along with higher keyword costs.
• Manufacturers with highly specialized products are more inclined to use search advertising.
• Google has been successful in buying traffic from smaller websites through Adsense. In response, Baidu has re-organized its Baidu Union.
• Baidu is also driving its community-based products by analyzing users’ keyword searches. Baidu is enhancing the ‘stickiness’ of its community-based products such as post bar, Baidu Knows, and Baidu Space. Baidu sees huge potential for e-commerce.
• Targetisement: Conceptualised by chairman Robin Li in 2006, targetisement is a new advertising format  that delivers different ads based on users’ behaviour after analysing the cookies stored in their PCs or their keyword searches. It leverages Baidu's extensive databases. Baidu believes targetisement is superior to the conventional time-based fixed placement banner ads. Customers of targetisement include BMW, Benz, Haier, Nike and Samsung.