Baidu Robin Li Jun Yu 李彦宏

Listen to Baidu, one of the largest search engines in mainland China, to tell you why it keeps a fast pace to develop the Consumer to Consumer marketplaces (C2C).  

” Baidu C2C business is not a near-term revenue.., yet we’ve seen an increasing number of internet users looking for consumers products, information and services online. ” said Robin Li Jun Yu (李彦宏), Baidu’s chairman and CEO.

Mr Li noted that the C2C marketplace could not generate big profit to the company in the near future, however,  it has a strategic value to the future growth of the whole company.

“Pay Per Click” (PPC) business model has accounted for  80% of Baidu’s total revenue, Baidu put heavy weight on digging deep and exploring such advertising models as keywords pricing, banner and brand advertising in order to substain its profit growth over the years.

The more click-through of keywords or banners, the higher conversion value they can bring to the clients, then the higher prices Baidu can charge them. Mr Li foresee that Baidu can catch up with Google or Yahoo, which reap a bag of profit by charging eBay, Amazon or other eCommerce platforms using their keyword bidding system.

TG wrote a post about Baidu’s newest IM tool, which is an essential tool to penetrate into the C2C marketplace. How it becomes an integral part of Baidu C2C business model remains unclear though.

 

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