China Search International Introducing Baidu

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1 China Search International Introducing Baidu

2 Introducing Baidu THE CHINA OPPORTUNITY

3 China China is the third largest country in the world in terms of land mass after Russia and Canada. It s the largest country in the world with regards to population with 1.2 billion people. One out of every 5 people on the planet is Chinese.

4 The world s largest online economy China also has the world s largest population of internet users at 564 million. Currently, only 42% of China s population is online. That means that the potential for this number to grow is enormous. Internet users (millions) Australia 20 France 52.2 UK 53 Brazil 79 Japan 101 India 121 USA 245 China

5 Or to put it another way Australia France USA China = 50 million online users

6 Chinese are becoming richer Not only is China the biggest online economy they re becoming richer. By 2020 the number of wealthy households in China will be the same as the United States. The Chinese are looking for ways to spend their new found wealth and they are looking online. Over 34% of China s online population are very comfortable buying online already. This is a huge opportunity for foreign companies who offer goods and services.

7 They re becoming affluent The middle classes are expanding beyond the largest cities more rapidly and in greater numbers than any market has ever witnessed. Urban household disposable income 2010 Urban household disposable income Households Millions 12 Households Millions Household annual disposable income (USD) thousands Upper affluent >200 Lower affluent $16 - $31.5 Middle Class $9.5 - $16 Emerging Middle $6 - $9.5 Aspirant $4 - $6 Poor <$4 Source BGS Consultants

8 Chinese Online Behaviour Online Spending Habits 33.8% shop online 30.5% pay online 29.1% bank online Reasons for Going Online Research Products to Buy 45.5% Research for Work 49.2% Stay up to date news / events 51.3% Online Trust Chinese online consumers display a high level of trust when it comes to conducting transactions online. There is a considerably higher level of trust for brands that use SEM than SEO. This is because the Chinese public are actively purchase only from brands they are familiar with. As the Baidu screening process for advertisers is so vigorous the Chinese public place a high level of trust in any brand that has been granted permission to advertise. Most Popular Activities Search Engine 76.3% Online News 78.5% Online Music 82.5%

9 Best way to reach Chinese customers Baidu is the default Search Engine in China. Even iphones in China use Baidu as their built in Search Engine. If you re trying to reach Chinese customers, then you need to be on Baidu.

10 Introducing Baidu WHO ARE BAIDU?

11 Baidu is China s equivalent of Google Baidu is the major search engine in China with over 508 million regular users. That the equivalent of all the Google users in Europe and Asia combined. Population of China: 1.3 billion Online Population: 564 million Baidu s Reach: 508 million

12 Baidu Search Product Baidu Search Results look like Google s search results in their layout. Exact matches go in the wider left hand column, whilst broad matches go on the right hand side. Organic searches go on the left underneath the Paid Search Results Exact Match Paid Search Results Broad Match Paid Search Results Organic Search Results

13 How is Baidu different? Baidu is different to Google and other search engines in a number of ways: Baidu is entirely in Simplified Chinese Although the principles are similar, Baidu uses a different algorithm for ranking results Baidu is Pre Pay, advertisers deposit fund into their Baidu accounts and their campaigns run until their funds have been spent. There is an approval process to become a Baidu advertiser requiring several company documents It can take a couple of weeks to become approved and begin advertising The Click through rates on Baidu are better (2% average) There are some subjects that cannot be advertised under Chinese law

14 Why can it seem complicated? It s true, it can be very challenging to become registered as a Baidu advertiser. The Chinese government wants to ensure it s citizens are protected from counterfeit goods, unscrupulous retailers and unauthorised companies. In order to do this they have insisted Baidu run a number of checks for all new advertisers. Whilst the process can be frustrating, it is actually good news for foreign retailers. Baidu help keeps its platform clear of counterfeit products that might impact your sales. The Chinese public place a very high level of trust in Baidu advertisers. They are much more likely to click on a Baidu ad than Google users. The result is higher click thorough rates 2% on average although we ve seen advertisers with up to 50% click through rates.

15 Baidu s advertising solutions Baidu offers 3 different advertising solutions: 1. Paid Search similar to Google, bid on keywords which promote your website 2. Content Network banner ads placed on over 500,000 different Chinese websites. Many different sizes are available, with lots of options for targeting the right consumers. 3. Brand Zone intended for blue chip clients who are already a household name in China. Brand zone is effectively a home page take over of the Baidu site.

16 Product 1: Baidu Paid Search Baidu s SEM solution works similarly to Google Clients select keywords and nominate a price per click they they are prepared to pay. How does it work? Clients and Agencies who are familiar with other search networks like Google, Bing or Yahoo will find it easy to set up a Baidu Search campaign. The same broad process applies. Clients select keywords and the maximum price they are prepared to bid on each keyword (Cost per click CPC) Targetting Campaigns Campaigns can be targeted by - Day Part - Geo targeting (regions of mainland China, major cities, Japan, rest of world) NB: Cannot target Hong Kong or Taiwan Baidu only charges client when their ad is selected or clicked so they only pay for performance. The average cost per click on Baidu is $1.00 for broad terms which is significantly cheaper than other search platforms. Specific terms are even cheaper. The average click through rate is 1% (some of our clients have CTRs of 25% for specific brand terms). Compare that to Google s average of 0.02% Unlike Google, Baidu requires payment in advance for campaigns. Funds are added to your clients account and their ads will run until those funds are depleted.

17 Product 1: Baidu Paid Search Just like on other search platforms, Baidu don t publish the exact algorithm that gets a site the top advertising slot. We do know however that it s a combination of quality score and maximum keyword bid. What does it look like Baidu s search results look very similar to Google s. The results at the top / centre of the page are exact matches to the keyword that the Baidu user has typed in. Results below the red box are organic search results. The red box on the right shows broad matches to the keywords that the Baidu users typed in. A brand s position on the page is influenced by their CPC (the highest bidder for the keyword appears at the top of the page) and the website quality score. The quality score refers to how relevant Baidu feels each keyword is for your client s website. If a keyword appears many times in a website and meta data, it will have a higher quality score. If you re the highest bidder but have a low quality score for a given keyword, you won t be given the top paid search slot.

18 Product 2: Baidu Content Network If your clients need to work on their brand recognition then Baidu Content Network is the right choice. Rich graphics, animation and video can be targeted to more than 500,000 sites in China. How does it work? Baidu tracks where web users go, what sites they visit, what search terms they use and what they say on social networks. The result is a very rich detailed profile that advertising clients can use, to target exactly the right audience for their products. Banner ads have an advantage over pure search results in that they can use imagery, flash, text and levels of interactivity that a website user is more likely to engage with. It s also great for clients whose campaign objectives include extending brand awareness. The use of logos, colours and imagery will do a much better job of extending the reach of a client s brand than search results alone. The same broad process applies. Clients select keywords and the maximum price they are prepared to bid on each keyword (Cost per click CPC) Targeting Campaigns Campaigns can be targeted by - Day Part - Sector e.g. financial sites or youth sites only - Geo targeting (regions of mainland China, major cities, Japan, rest of world) NB: Cannot target Hong Kong or Taiwan - Keywords and negative keywords - Types of sites visited recently - Search terms used in the past 2 months - Retargeting (via keywords or anyone who visited the site in the past 30 days) Baidu only charges client when their banner is selected or clicked so they only pay for performance. The average cost per click is only 0.20 USD on Content Network making it a great choice for clients on a limited budget.

19 Product 2: Baidu Content Network There s a wide range of ad specs accepted on the Content Network to suit every client s needs. What does it look like There are currently over 500,000 websites on the Content Network across a wide variety of genres. For the latest list check here (make sure you view it on Google Chrome so you can translate the content to English) Ads can mimic offline campaigns or be online specific the sky s the limit of how client s ads might look. The screen shot is from and shows 5 different banner ads placed as part of Content Network. Top 10 Most Popular Banner Sizes Banner Size Usage 960x % 728x % 250x % 300x % 468x % 640x % 960x % 200x % 160x %

20 Product 2: Content Network 网 盟 广 告 Over 500k+ websites from a wide variety of genres

21 Product 3: Baidu Brand Zone Brand Zone represents the best possible exposure for clients who already have a known brand in China. This service is generally utilised by blue chip clients whose brands are household names. How does it work? Brand Zone is Baidu s equivalent of a home page take over. Brand Zone clients can own the space above the fold whenever one of their brand terms is searched on Baidu. Instead of just a search listing, Brand Zone provides true brand exposure, ensuring users know who you are long before they make it to your website. Best of all Brands can also own their brand related keywords exclusively. No other Baidu advertiser can use their keywords. Their competitors can no longer capitalize on their brand equity. There is no equivalent of this on other search engines. Impressively, Brand Zone campaigns enjoy an average click through rate (CTR) of 50%. Compare that to the Baidu SEM average CTR of 1% (or the Google SEM average CTR of 0.2%). Half of everyone that views a Brand Zone campaign interacts with it. That s a measurable proof of brand awareness.

22 Product 3: Baidu Brand Zone This successful campaign from Burberry includes shows logos, videos, animated gifs, multiple product photos, latest news, deep links and social media. (Translated from Chinese using Google Translate)

23 Product 3: Baidu Brand Zone Chanel s Brand Zone campaign includes logos, latest news results, product promotions, links to videos, their official television commercial, social media links, downloads and links to their iphone app. (Translated from Chinese using Google Translate)

24 Product 3: Baidu Brand Zone Rolex dominates their competition with this campaign showing animated gifs and a full table of their biggest selling range for men and women. (Translated from Chinese from Google Translate)

25 Product 3: Baidu Brand Zone Compare this to one of Rolex s key competitors Omega. Omega has chosen to concentrate on SEO rather than paid search and they ve done a pretty good job of it. They have the third organic search spot. Meanwhile the paid search slots have been taken by Omega resellers. Paid Search results Omega s official site Unfortunately they re half way down the page surrounded by competing brands and e-commerce sites. Rolex has avoided this battle altogether. The choice to use Brand Zone has guaranteed Rolex not just the top slot but the entire area above the fold. They didn t just beat their competition; they removed them from the platform.

26 Getting Started on Baidu We can help you select and translate your keywords for Baidu Send us any keywords you re currently using for other search campaigns such as Google or Yahoo. If you don t have an existing keyword list, we will help you develop a list of what keywords you should be using. We use the list to check how many Baidu users have typed in each keyword in the past 30 days to gauge demand for your products. This allows us to present a budget estimate. You can refine your keywords and budget until you have a mix you re comfortable with. Minimum spend is $5,000 AUD per month for 3 months.

27 Opening a Baidu Account New accounts need to provide a number of documents to Baidu before your account can be opened. 1. Letter of Commitment this is a contract between Baidu and the advertiser. The wording is very broad to ensure that Baidu (and ultimately, the Chinese government) maintain complete control over what happens on the platform. 2. Business Registration Documents proof of your company s registration and ownership. 3. Screenshot of your homepage that clearly shows the URL There are a number of industries that require additional documentation. For example, real estate agents need a real estate license, airlines require Chinese airline registration. We can help you determine what documentation your company requires in order to ensure your account is opened as quickly as possible.

28 Introducing Baidu INTRODUCTION TO CHINA SEARCH INTERNATIONAL

29 China Search International CSI are expert Baidu Re-sellers. Our clients are predominantly international companies looking to capitlise on opportunities in China. We are a Baidu re-seller not an agency. That means our business model does not rely on charging management fees. We are Asia-Pacific based European advertising executives with an international approach to business. We ve all worked with major brands / agencies in the UK, USA, Australia and Switzerland so we understand your requirements and the importance of managing your client s expectations. The result is that we re well placed to guide your campaign through the complex Baidu process.

30 Contact Us Ali Gursoy - Business Development Manager Phone: Mobile: Address: Suite 17, 13 Hickson Road, Walsh Bay, NSW 2000 Australia Skype: alisteam

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