Baidu is the most powerful search engine in China. Google China is second to Baidu. These two huge players account for almost 90% of the market share in Chinese search market. If you want to succeed in Chinese search market, you\'d better know Baidu better!

3. Agenda China Why the Chinese Market? Different Search Interaction Baidu About Baidu Why Baidu can be No.1 in China? Baidu vs. Google Comparison SEO & Marketing Tips 3/26

4. Agenda China Why the Chinese Market? Baidu Why Baidu can be No.1 in China? Baidu vs. Google Comparison

5. 1. The People’s Republic of China (aka China 中國) Area: World's fourth largest country (after Russia, Canada, and US); Population: 1,338,612,968 (July 2009 est.) Language: Mandarin Chinese, Cantonese and etc. 4/26

6. 1.1. Why the Chinese Market? *World Internet User Statistics were updated for September 30, 2009. The number of Internet users in China: 360 million (vs. 228 million in the US) Internet penetration rate: 26.9%(vs.74% in the US)

7. 1.1. Why the Chinese Market? The number of Internet users increased by 40 million compared with late 2008, up 13.4% within six months. The number of Internet users in China: 340million (vs. 230million in the US) Internet penetration rate: 25.5%(vs.74% in the US) 5/26

8. 1.2. DIFFERENT SEARCH INTERACTION: Scan Pattern US: largely standardized into a Golden Triangle/ F Shape scan pattern China: No consistent pattern, little standardized behavior 6/26 8

9. 1.2. DIFFERENT SEARCH INTERACTION: Scan Pattern Why? Chinese does not have an alphabet but uses a logographic system for its written language, where concepts take their final meaning from a group of combined symbols Example: TOTRYTOPUTINAWESTERNCONCEPTUALFRAMEWORK,IMAGINEHOWDIFFICULTITWOULDBETOSCANMEANINGFROMTHISPARAGRAPHIFOURALPHABETWASEXTENDEDTO2000CHARACTERS… To try to put in a Western conceptual framework, image how difficult it would be to scan meaning from this paragraph if our alphabet was extended to 2000 characters… 7/26 9/21

10. 1.2. DIFFERENT SEARCH INTERACTION: Scan Pattern Also, the amount of time spent on the page before the first click are different. Google US: 8 to 10 seconds Google China: 30 seconds Faster/ Slower 3X!!! 8/26 10/21

11. In what direction is Chinese written? Traditionally, Chinese was written from top to bottom and then right to left. Nowadays, China has switched to the European style of left to right, top to bottom.

12. 2. Baidu百度 9/26

14. Area served: China, Japan

15. Multi-media content: MP3 music and movies, and the first one in China to offer WAP and PDA-based mobile search (700 million mobile phone subscribers in China).

16. Baidu offers a number of services to locate information, products and services using Chinese-language search terms

17. 57 search and community services including BaiduBaike, Baidu Post Bar, Baidu Internet TV and etc…10/26

18. 2.2. Why Baidu can be No.1 in China?(or Why Google cn can not?) Market Positioning First mover advantage Download/MP3 factor Google’s server down time 11/26

19. 2.2. Why it can be No.1 in China? 1) Market Positioning 12/26

20. 2.2. Why it can be No.1 in China? 1) Market Positioning: “Phonetic” or “Pin-Yin” search 13/26

21. 2.2. Why it can be No.1 in China? 1) Market Positioning A Canadian website?! Pornographic content?! 14/26

22. 2.2. Why it can be No.1 in China? 2) First mover advantage 15/26

23. 2.2. Why it can be No.1 in China? Online music has always been the top Internet application in China, and its use rate continued to climb and reached 85.5% in July 2009. 3) Download (MP3) factor 16/26

24. 2.2. Why it can be No.1 in China? 4. Google’s Server Down Time Strict Chinese Governmental Regulations 17/26

25. 3.Baidu vs. Google.cn 18/26

26. 62% Baidu vs. 29%Google China 19/26

28. 3.1. Comparison Users scan right to the bottomof the pages! Users didn’t scan behind the 4th listing. 20/26

29. 3.1. Comparison Why the differences? Quality of the results (a horrible search exp) Paid search & organic results were not clearly divided. 2) All paid search results were placed BEFORE the organic search results. 21/26

30. 3.1. Comparison However, “Phoenix Nest” advertising system since Dec. 1, 2009 Results: Google-like Baidu 22/26

31. 3.1. Comparison Google Baidu (latest version since Dec.1) 23/26

32. 3.2. SEO & Marketing Tips Title & Meta Tags Meta description & Meta keywords tags are still useful in improving ranking in Baidu. Content 6-12% keyword density for Baidu optimization Linking Link quantity > link quality Site Structure Buidu doesn’t care as much for robots.txt and content duplication 24/26

33. 3.2. SEO & Marketing Tips Server Hosting in Mainland China helps Baidu ranking significantly. However, not essential to get .com.cn or.cn domain names Content Language Simplified Chinese, so what about English? Geographical Market Simplified Chinese for Mainland China Traditional Chinese for Hong Kong and Taiwan Localized to the city/province will yield better conversion rate! 25/26

34. Thank you! The End… 26/26 Alice Chen Alice.Chen@BusinessOL.com +1 (619) 699-0767 x248

35. Google in China- Google’s Share of Total online ad revenue in mainland china per cent

36. Will google.cn quit? Rethink about it! Up to 30% of the market share and it’s still growing; Leaving China would hamper Google's ability to keep up with local tastes and maintain relations with Chinese advertisers that target audiences both at home and abroad; Good for its competitors; “I don't understand how that helps anything. I don't understand how that helps us and I don't understand how that helps China” – Steve Ballmer, Microsoft

38. alice.chen@businessol.com