Baidu has changed its PPC algorithm since 11 Sep 2006 in which cost-per-click (CPC) is not anymore the only factor in determining its PPC ad rankings. Baidu has introduced the Combined Ranking Index to its new PPC algorithm which is determined by:
CPC x Keyword Quality
The higher the Combined Ranking Index of an individual keyword, the higher that keyword is ranked. Keyword Quality includes the following factors:
- Clickthrough Rate (CTR)
- Landing Page
- Other Historical Factors
I believe obviously this is Baidu’s great advancement in terms of its PPC ad platform. The change is inevitable as two other American major PPC players MSN Adcenter and Ask.com Sponsored Listings have already included CTR and some other factors into calculating PPC ad rankings. By Q4 Yahoo Search Marketing (formerly Overture) will also be doing the same via its new PPC platform, Panama.