SubscribeBaidu’s New Ads System is Still Old
On December 1st, 2009, Baidu closed its previous paid search ads system, and fully switched into the new Phoenix Nest system. But on December, we found that the concept of the new system is still old.
Traditionally, Baidu made its paid search listings on its search result pages, most of the users of the search engine cannot differentiate ads from organic search results. They are confused by paid and non-paid results.
In Nov 2008, China Central Television (“CCTV”), the largest state-owned television network in China, reported that Baidu took money from illegal medical companies for paid search results. The more they pay, the higher up their name appear in the search results page. The paid search results undermined the integrity of the search experience.
Immediately after that, Baidu announced that it would introduce a new ads system, i.e. Phoenix Nest, which will more clearly separates its paid links from ordinary search results. In April 2009, Baidu pilot launched its new ads system. Phonenix Nest system is a totally new system in terms of advertising management, it is very similar to Google’s Adwords system. As to the media reports on Phoenix Nest, on its new system, the sponsored results will only be listed on the right of the search results pages, and separated from organic results.
In Nov, Baidu announced that the old ads system will be totally replaced by Phoenix Nest on Dec 1st. On a report by China Daily on Nov 30, it said, “the new stem will clearly distinguish search ads from normal, or organic, search results. That means the controversial keyword advertising bidding system is going to step off the stage”.
However, on Dec 1st., I found that you can still see paid results mixed with non-paid results, just as previously. This new system still allow ads to be listed on the left, even though you need to refine the quality of your ads text to make it qualified to be listed on the left.
The new Phoenix Nest is still old in terms of its underlying paid search concept. An ordinary search users can still be confused by paid ads and non-paid search results.
5 Responses to “Baidu’s New Ads System is Still Old”
Post a comment
Follow us on Twitter
- 3 Reasons Why Tencent’s Qzone, the Largest Social Network in China, is a Failure http://goo.gl/fb/KjXw
- Twitter designs China registration page, is still blocked in China http://goo.gl/fb/ndC8
- Digital Activism in China: A Discussion Between Ai Weiwei, Jack Dorsey and Richard MacManus http://goo.gl/fb/Z5wy
- Taobao’s Open Platform Is Unique, It Is For The Real Money http://goo.gl/fb/zCt3
- Best Article So Far On Netease’s Problems Getting World of Warcraft Approved In China http://goo.gl/fb/jTPK
- Xianguo, Online RSS Reader Raised $1Million, Chinese RSS Market Is Not Dead http://goo.gl/fb/ddJL
- RT @ganglu: 30%-50% Traffic To Existing Chinese Video Sites Is From Baidu, CEO of Baidu’s Qiyi Said. - http://tinyurl.com/yl5ne3a
- Will Investment Ever Stop Flowing Into Chinese Video Sites? http://goo.gl/fb/Qtda
China Web Research
[...] Baidu’s New Ads System is Still Old : China Web2.0 Review http://www.cwrblog.net/1358/baidus-new-ads-system-is-still-old.html – view page – cached On December 1st, 2009, Baidu closed its previous paid search ads system, and fully switched into the new Phoenix Nest system. But on December, we found that the concept of the new system is still old. [...]
True.
If the new system was not old, baidu won’t be able to produce an expected financial report
They would see a great decrease in their earnings.
Also this “new” system places new challenge in front of the advertisers guessing the algorithms behind it. Not only search users, but also advertisers are confused.
I had noticed it but wasn’t surprised. Do a search for “上海宾馆” (Shanghai hotels) or any other money query and you’ll see that there are 10 paid ads on the left side and below the fold 10 organic. On the right side it’s now also contextual so on the whole more chances of making more money from the same query as there will be now potentially 20 paid ads in total on the first page.
From what it looks like it was never the plan as it would affect their earnings too much, also pointed by the previous comment. This way they probably come up with a nice Q4.
I don’t see them change the system to one where there’s a clear distinction between paid and organic. They’re the leader in the market and looking at log files of some clients they’re at minimum not loosing market share, seems more like they’re gaining against Google.cn.
Maybe another backlash, orchestrated by CCTV or a similar entity, would make them contemplate changing but most likely it will be words until the storm has passed by.
On the other hand, I can’t blame them. If the huge majority of Chinese internet users favors (and keeps on favoring) you as their preferred search engine, why change.
“As to the media reports on Phoenix Nest, on its new system, the sponsored results will only be listed on the right of the search results pages, and separated from organic results.”
please note your media source, because all this article is base on this rumor. I work as chef of SEM in region of Asia, Baidu didn’t say this. Briefly speaking, Baidu want a copy of Adwords in campaign structure, them comes Baidu Phoenix, the point is for ads publishers instead of internauts’ user experience.
@Gemme, acutally, the new system has something different, not all keywords has chance to be shown in search results section.
@Liang, lots of media have reported, a quick search can find it. Even for the link to WSJ blog in the article, they said “Under Phoenix Nest, paid ads will appear in a clearly marked section on the right side of the search results page”. Maybe Baidu did not say it very clearly, but they do make the media believe it. And as I know, many advertisers only know they can still put advertisers on the left on Dec. 1st.