Tuesday, April 12, 2011

E-Business Giants in China Remove Their Ads on Baidu.Com and Quit Baidu.Com Promotion

Baidu.com is the largest search engine in China and its search market portion has increased a lot especially after Google's quit. Just the same as Google, its main revenue comes from ads. But recently many advertisers announced that they would remove ads on Baidu.com, including Newegg.com, Dhgate.com and Dangdang.com.

Baidu.com has achieved a lot in Chinese online ads market. Because of the roaring ads price and low input-output ratio many e-business companies are unable to stand anymore. A few days ago Dangdang.com published on its website public notice writing that it would stop advertising on Baidu.com completely that includes brand zone and keywords promotion. It also added that it would not stop Baidu.com from collecting its websites. The CEO of Dangdang.com said that the reason was monopolistic Baidu.com manipulated the search results arbitrarily and didn’t respect intellectual property rights. And the CEO of 360buy.com also wrote on his micro blog to criticize Baidu.com.

There is no official response from Baidu.com when those companies decided to remove ads on Baidu.com.

Big e-business companies have the ability to promote themselves in other ways, but small and medium-sized companies must depend on Baidu.com promotion and ads. A staff from a group purchase website told that because its competitor bought the keyword of its company's name, every time users search its company's name they would be lead to competitor's website. So he said that they also were forced to advertise on Baidu.com.

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