the china opportunity marketing in china with baidu | china search | ntent
TRANSCRIPT
The World’s Largest Online Economy
China already has the largest online population in the world at 618 million users.
Astonishingly that’s only 46% of their population, so their capacity for growth is enormous.
0
100
200
300
400
500
600
700
618
245
121101
7953
2046
79
10.2
80
39
84 89
Online Population MMs
% of Population Online
They’re Becoming Affluent
The middle classes are expanding beyond the largest cities more rapidly & in greater numbers
than any market has ever witnessed. The number of Middle and Affluent Consumer
HOUSEHOLDS in China will be the same as the US by 2020.
1
13
34
61
57
36
12
53
69
66
39
23
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
Households MillionsHouseholds Millions
Source BGS Consultants
Urban household disposable income 2020Urban household disposable income 2010
Chinese Online Behavior
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%
Most Popular Activities
Search Engine – 76.3%
Online News – 78.5%
Online Music – 82.5%
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
actively purchase only from brands they are familiar
with.
Since the Baidu screening process for advertisers is so
vigorous – the Chinese place a high level of trust in
any brand that has been granted permission to
advertise. Hence, the average CTR for Baidu’s SEM of
4.8%.
The Chinese online behavior is similar to that of Western countries – but they display an
unusually high level of online trust.
Chinese Online Transactions
Online transactions reached $301.9 billion USD in 2013. It is expected to surpass $651 billion
USD in 2017.
$75.03
$127.69
$212.08
$301.11
$398.76
$491.54
$585.94
$673.83
75%
70%
66%
42%
32%
23%
19%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
2010 2011 2012 2013 2014e 2015e 2016e 2017e
Transactions USD Billions Growth Rate (%)
Source iResearch, “2013 eCommerce market core value analysis”
Baidu is China’s Equivalent of Google…
Baidu is the major search engine in China with over 560 million regular users. That’s the
equivalent of all the Google users in Europe and Asia combined.
Population of China: 1.35 billion
Online Population: 618 million
Baidu’s Reach: 556 million
Baidu’s Key Product Offerings
Loyalty 忠诚Purchase 购买Consideration 考虑Familiarity 熟知Awareness 知晓
• Content
Network
• Brand Zone
• Brand Zone
Mini
• Keyword Search (SEM)
• Baidu Wireless (Mobile)
Search Network
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).
Baidu only charges clients 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 4.8% (some of
our clients have CTRs of 25% for specific brand
terms).
Unlike Google, Baidu requires payment in
advance for campaigns. Funds are added to
your client’s account and their ads will run until
those funds are depleted.
Targeting Campaigns
Campaigns can be targeted by day part or geo
targeting (regions of mainland China, major
cities, Japan, rest of world).
Baidu’s SEM solution works similarly to Google – Clients select keywords and choose a price
per click they they are prepared to pay.
Search Network
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.
Just like on other search platforms, Baidu doesn’t publish the exact algorithm that gets a site
to the top advertising slot. We do know, however, that it’s a combination of quality score and
maximum keyword bid.
The quality score refers to how relevant Baidu
feels each keyword is for your client’s website.
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.
Content Network
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 average CTR is 2-3%, but increases to 5% if
retargeting is used.
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.
For the latest list of sites in the network – (make
sure you view it on Google Chrome so you can
translate the content to English)
http://wm123.baidu.com/.
If your clients need to work on their brand recognition, then Baidu Content Network is the right
choice. More than 600,000 sites in China, with over 80 billion daily impressions.
What is the Baidu Content Network?
Baidu’s Banner network covers more than 600,000 sites which receive more than 80 billion
daily impressions.
Target users by:
• Gender
• Age
• Location
• Interests
• Sectors
• Visitors to specific sites
• Clicked on ads previously
Retarget users by:
• Who visited your website
• Abandoned a shopping basket
• Registered, but yet to purchase
• Retargeting keywords (competitors / banned
terms)
Retargeting Increases CTR to 4-5%
What is the Baidu Content Network?
There are a wide variety of banner formats available on the platform – we recommend clients
prepare their ads in a minimum of 10 different sizes.
Embedded ads - Available in 18 different
sizes and in JPG, GIF or SWF formats.
Floating ads - move down the page and stay in the users
line of vision. Available in 3 sizes and in JPG, GIF or SWF
formats.
Brand Zone
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 60-80%.
Compare that to the Baidu SEM average CTR of
4.8%.
More than half of everyone that views a Brand
Zone campaign interacts with it. That’s a
measurable proof of brand awareness.
Brand Zone represents the best possible exposure for clients who already have a “known” brand
in China. This service is generally utilised by clients whose brands are household names.
Brand Zone
What to expect
Costs for Brand Zone are bespoke and offer a
fixed price for unlimited clicks. They’re based on
the volume expected for each keyword used.
This is not a cheap option and hence only cost
effective for blue chip brands who can expect
huge traffic levels.
Keep in mind that Brand Zone campaigns can
only use keywords owned by the brand – and
they can only be used on exact match (not broad
match).
So if you own a hotel called Oceanside Hotel in
San Francisco, you would be able to use:
“Oceanside Hotel San Francisco” or
“Oceanside Hotel”
but not
“San Fransico Hotel” or
“Hotel”
Protect yourself from the competition by exclusively owning your brand terms on Baidu.
Brand Zone Matrix
Brand Zone campaigns display on both desktop and mobile platforms as well as 5 of Baidu’s
most popular internal platforms.
Video SearchOver 120 million in daily
traffic
Mobile Keyword SearchOver 40% of Baidu’s audience
Desktop Keyword Search
Image SearchChina’s biggest image search with
over 250 million daily users
News SearchChina’s biggest news
search platform
Baidu KnowledgeZhidao - China’s biggest knowledge
portal (Yahoo Answers)
BRAND ZONE
Wiki ZoneChina’s biggest Wiki site
Brand Zone - Desktop
This successful campaign from Burberry includes logos, videos, animated gifs, multiple product photos, latest
news, deep links, and social media. (Translated from Chinese using Google Translate)
Brand Zone - Desktop
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)
Brand Zone – Desktop
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)
v
Brand Zone – Baidu Video Portal
Baidu Video comes with official HD video, business introduction and a takeover presence.
Brand Zone – Baidu Image Search
Baidu Standard Image comes with a extra large rotating picture at the top and Baidu Advanced
Image will have the first page dedicated to one brand with four big rotating pictures.
Brand Zone – Baidu Knowledge
Baidu Knowledge Portal comes with customized information and large image of the brand.
Brand Zone Mini
How does it work?
As the name implies, Brand Zone mini is a
smaller version of the full Brand Zone product.
Brand Zone mini only takes up 1/3 of the area
above the fold but like full Brand Zone – it offers
exclusivity over brand terms on the platform and
unrivaled brand exposure.
Brand Zone mini is also available on the Baidu
Knowledge portal – China’s largest knowledge
portal (equivalent to Yahoo Answers).
Charging model is based on performance –
CPM, promotion area and length of
campaign.
Cost and Targeting
Unlike full Brand Zone, mini can be geo targeted
to specific Chinese provinces – making the
campaign even more cost effective.
The costs of brand zone mini are bespoke and
based on keyword volume, geo-targeting, and
campaign length.
Estimate between $3 – 8k per month.
Brand Zone Mini is an alternative for clients who wish to explore the Brand Zone format on a
smaller budget. It helps to create awareness for clients whose brands are still trying to
establish themselves as household names.
How is Baidu Different?
Baidu is pre-pay
It works a little like a pre-pay mobile phone.
Clients add funds to their accounts and their
campaigns run until those funds run out. They
can add a top up at any time.
Everything is in Simplified Chinese
We see an 85% drop off rate whenever Baidu
users see a page in English. As a minimum
clients should commit to a Chinese language
landing page.
It takes time to open an account
It takes approximately 1 week to open a new
account once Baidu have all the necessary
documentation.
Opening accounts in restricted industries such
as pharmaceuticals, finance, and the medical
industry can take significantly longer.
No Agency accounts
Unlike Google, there’s no concept of an agency
account on Baidu. That means that every client
(in fact every domain) must have a separate
Baidu account and be individually approved by
Baidu.
However, agencies using a bid management tool
can continue managing accounts in the same
way. We can provide an API to Baidu to allow
your accounts to be managed seamlessly.
What works on Google won’t necessarily
work on Baidu
It’s not just a matter of language. The Chinese
search in a very different way to Western
cultures. You need more than just translation,
you need localisation by SEM experts.
Baidu doesn’t operate like other search platforms. Here’s some of the key differences.
Getting Started on Baidu
Keywords
• Send us any keywords you’re currently using for other search campaigns such as Google or
Yahoo. Alternatively we can prepare a bespoke keyword proposal.
• We’ll check how many Baidu users have typed in each keyword in the past 30 days to gauge
demand.
• This allows us to present a budget estimate. You can refine your keywords and budget until you
have a mix you’re comfortable with.
We can help you select and translate your keywords for Baidu.
Opening a Baidu Account
Open your account online
• To get started–open your account online at
http://signup.chinasearchint.com/
• You’ll need a copy of your business
registration certificate and a screenshot of
your Chinese home page that clearly shows
the URL.
• Minimum spend is $2,000 USD per month for
3 months.
• Our online account opening portal will use
the details you provide to pre-fill out all the
necessary documentation to open your
account.
• Each page of the pdf produced needs to be
signed by the brand (not the agency) and
returned to us.
Documents produced by the online portal
1. Letters of Commitment – These 2 contracts
commit the advertiser to not break any
Chinese laws.
2. A “V Qualification” certificate – which verifies
your site to the be the authentic and official
site for your brand.
3. Proof of Authorization – Declares who is
able to sign on behalf of the brand.
We can take you through the (rather lengthy)
account opening procedure step-by-step to
ensure a smooth and hassle free process.
New accounts need to provide a number of documents to Baidu before your account can be
opened.
China Search International
Overview
We are Baidu’s International Partner, not an agency. That means our business model does not rely on charging management fees.
In fact – the only charge you or your clients will ever see from us is a 2.5% processing fee to cover our banking and foreign exchange fees. In essence we are paid by Baidu to sell Baidu.
With offices in Singapore, California, Hong Kong, Sydney and London we’ve guided hundred of clients through the complex Baidu processes.
We’ve all worked previously at major brands / agencies in the UK, USA and Australia so we understand your requirements and the importance of managing your client’s expectations.
The result is that we’re well placed to help your clients launch on Baidu in the most cost effective and hassle free way.
Some of our more well known clients
Baidu’s Largest International Partner – Over 15,000 Clients Outside of China.
Opening a Baidu Account
Our free services include:
• Translation of all documents for submission to Baidu
• Facilitation of the account opening process
• Provision of bespoke keyword lists where required
• Translation / localisation and volume checking of keywords and ad copy
• Loading of keywords into the client’s Baidu account ready for launch
• Bid Management API application on the client’s behalf
• On-going technical support
• Issuing of invoices in the client’s preferred currency and transferring of funds into the
client’s Baidu account.
• Full training on how to manage accounts on Baidu (use of the Baidu console)
• Provision of research decks on relevant sectors and updates in the Chinese market
• Pitch Support (provision of keyword proposals, research, and recommendations)
Because we’re not an agency – we don’t charge a management fee. All our services are free.
Getting in Touch
Should you have additional questions, please
don’t hesitate to get in touch:
Kevin J. Carney
VP, Agency Partnerships & Strategic Accounts
(646) 561-8643
www.baiduint.com