Google vs Baidu in China

Two advertising methods will be implemented: Cost per Mille (CPM) and Cost per Click (CPC). In the CPM model, the advertiser agrees to pay the publisher a predetermined amount for every 1,000 ad impressions served. The average CPM value is $0.38 and a reasonable value. In the CPC model, the advertiser agrees to pay the publisher a predetermined amount for every click of the advertisement. As the company develops, it will become be able to gain a more engaging user base, making the CPC model will be more profitable. Allowing advertisements from selective advertisers, each deal is on average

In an intensely competitive market, how to satisfy a customer’s demand and make an efficiently advertisement are very important for e-commerce and e-business.

In the article written by Dan Levin, “Chinese Web Search Giant Serves Two Masters” there is a great amount of information on how Baidu gained a competitive advantage over its competition in the web search engines industry. Baidu (BIDU) is best known as the main Internet web search engine that can b found in China, where it 's long ways in front of Silicon Valley 's Google (GOOG). In any case, Baidu, situated in Beijing, likewise gives various other web related administrations, such as Wenku (library service, Qiyi (Tv program and movies service), and Youku ( major video site). The hidden narrative of how Baidu

There are various companies around the world that have business and services in China and Google is one of them. Google is the number one in search engine and in advertisement. It has its operations all across the world and has had a good performance over the last many years. With their multiples attempts in China, Google had been through challenging issues. Part of the main causes with these issues is that Google acceptance of the Chinese government policies. The government had created certain regulations on the use of Internet. Because of this strict regulation, Google was dealt with a definite case of an obstacle to fully penetrate consumers in China. In relation to this fact, Google was faced with the problems of whether to continue operations in China or not. In addition, Google has to find out whether, it should totally move out of the country. This was a big task giving the company had done business in country for a while. China is the fastest and largest growing market in the world and if Google decides to move out of the country, then, Google could experience loss of income and revenue to certain degree. Instead of taking this risk to move out, Google should make sure to follow its company policy if needs to achieve better results in the future.

Baidu adopted a strategy that focuses on searches in Chinese. The company has an advantage on this as the team understood the Chinese language, culture and the operations as opposed to other overseas competitors.

In conclusion it can be seen that advertising in a monopoly is an effective way to increase profits. This

Second, the keyword advertising is the method of advertising on search engines through the online auctions. The most important activity is to bid a relevant keyword. The higher rank initiates a greater visibility of the ad at the very top of the page. It happens some search engines rank the ads for their popularity instead of money. Merchants must group their keyword efficiently to receive a maximum return on investment. However, a study states that keyword advertising has no short-term benefits and a statistically

Yahoo! Search Marketing is using real-time bidding (RTB) technique, with which advertising buyers bid on main slots along with Yahoo!’s search results after the user put in certain keywords for search. RTB is different from traditaional bidding methods, such as CPM (cost per mille) and CPC (cost per click). To put it simply, RTB allows advertising buyers to bid for target customers, which are selected through analyzing users’ browsing history and possible interests, and to place specific advertisement for each user. In this way, the presented advertisement becomes more relevant and precise for target customers.

Google, Inc. started service in China through Google.com, a version of its homepage in Chinese language. Although it is operated outside the country, the search results of search requests from China are monitored and filtered by the Chinese international gateway Internet service providers (ISP). Two years after the start of service in China, Google.com was down for two weeks and was slow and unreliable after reinstatement. As a result, Google, Inc. was losing market share in China. With the objective of developing a more sustainable strategy, the company conducted an analysis and comparative study. The output was a decision to establish physical presence through Google.cn, a search engine that is based in China. However, the search results in Google.cn are subjected to self – censorship and government monitoring and filtering as required by Chinese laws of the ISPs that are operating locally. Because of this decision, Google, Inc. is faced with criticism and bad publicity. The initial solution was to keep both Google.com and Google.cn.

maximization and optimization of the performance of advertisements and advertising campaigns by identifying and retargeting past website visitors

Since 1978 when Deng Xiaoping took away the centrally planned economy and introduced the capitalistic market reform, China has witnessed tremendous transitions and growth. This tremendous growth lasted for 30 years. Between 1983 and 2013, the GDP of China has an annual grow of 10.2%. Also, China has transformed from a sleeping rural, to a giant

China’s policies have directly influenced the competitive landscape for search firms in China. In this market, Baidu is usually referred to as China’s Google. Not only does Baidu have a strong competing search engine

Online advertising enable advertisers to achieve specific campaign goals more strategically than traditional media. Advertisers can weigh creative by best performing, limit daily impressions through frequency caps and have better reach control by the advanced targeting capabilities offered online. (Heindl, 2008)

Additionally, in this transaction, Baidu does not just lose one battle, but has high odds that it may be lose others because Tencent and Alibaba get huge economic benefits from Uber China merges with Didi Chuxing. These companies are called BAT in China due to the fact the first letter of each company, Baidu, Alibaba and Tencent. The reason for that is because BAT represents three of the biggest internet companies in China which means these three companies have to compete the same market. Baidu has a significant negative effect on this costly taxi war whereas Alibaba and Tencent gain many positive influence. What I mean is that Baidu will probably not sufficient free cash flow to fund driverless technology, without investing money in driverless technology will not hurt Baidu’s ability of earning profit, but definitely, in the near future Baidu will have a difficult time in online to online industry. The reason for that is because in online to online industry companies have to put a lot of money to fund innovation to make sure it has edged-cutting technology to put pressure to its

Today, advertising is booming. With the growing markets and competition, it has become an essential tool to reach the target market as well as the target audience.