Baidu To Adjust P4P Ranking Policy

Written by Tangos on September 6, 2006
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Currently, Baidu ranks its keywords biding advertising, which is called pay for performance(P4P) product in Baidu, only by the bidding price. That is higher bidding price will get higher rank in the listing. However, according to some reports, Baidu will adjust its policy in next week.

The report quoted a source from Baidu said Baidu will introduce a comprehensive ranking index, which is a product of keyword quality index and bidding price, to adjust its P4P ranking policy next Monday. The rank will be determined by multiple factors rather than just by price. Keyword quality index will consider factors as historical click through rate for a specific keyword, its relevance to the business, and recognition by internet users. The final rank of an advertising is determined by comprehensive ranking index.

It is a major change for Baidu. The new policy is to some extent similar to Google’s and it is expected to be a win-win for Baidu and advertisers.

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