Baidu PPC Algorithm Changes

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)
  • Adcopy
  • Landing Page
  • Other Historical Factors
    Baidu PPC Jingjia Program

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.

Comments

2 Responses to “Baidu PPC Algorithm Changes”

  1. Wallstrip Conversation » Information Arbitrage on Baidu - Icarus in the Making? on December 5th, 2006 1:48 pm

    [...] Baidu has been intensely client-focused while working to improve its core search algorithms. Its decision to introduce the Combined Ranking Index to its PPC algorithm has been hailed by several analysts as a vehicle for maintaining its leadership position and continuing its market dominance. Baidu has changed its PPC (or Jingjia) 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: [...]

  2. Xin on August 13th, 2007 11:56 pm

    That’s great news. This will encourage advertisers to create better copies and give searchers a better experience.

    I am just getting into the Chinese PPC market. I have experimented with using English version of AdWords on China/Chinese, which seems to have the lowest CPC of 2p. This can be profitable, but I am going to try signing up to Chinese Adwords so I can link to a Chinese bank account, and perhaps get even lower CPC.

    I want to try Baidu too, but my lack of Chinese reading skills makes it difficult. I hear that it has a high upfront fee of 1000 yuan?

    Are you familiar with affiliate marketing? Apart from clickvalue.cn, are there other good Affiliate Networks out there?

    I am glad someone is blogging about the Chinese market in English. Keep up the good work.

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