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Tom Muldowney - Baidu v Google - Two Search Engine Giants Battle for China's Search Market

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Here is an evaluation of the world's top two search engines and how they battle it out for China's search market. This was an assignment as part of my MBS Digital Marketing in DCU, Dublin, Ireland.

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Tom Muldowney - Baidu v Google - Two Search Engine Giants Battle for China's Search Market

  1. 1. Baidu and Google in China’s Internet Search Market
  2. 2. <ul><li>Group C </li></ul><ul><li>Tom Muldowney 59212790 </li></ul><ul><li>Caroline Mullen 59213267 </li></ul><ul><li>Niamh Rooney 97482781 </li></ul><ul><li>Sinead Geraghty 53412725 </li></ul><ul><li>Guang Yeng 59210691 </li></ul><ul><li>Brendan Davis 59212184 </li></ul>
  3. 4. “ China is becoming a huge market for Web search tools. But cultural , political and aesthetic differences mean that Western search conventions and business models don’t necessarily apply.” - Simon Burns, Technology Review, 2005 Differences China USA Average Internet User Age 25 45 Credit Card Penetration 1 in 50 hold a Credit Card Average of 2 per person Focus on Result Page Wide-spread Upper Left Time Spent on Page 30 – 60 seconds 10 seconds Internet Coverage 22.6% 72% Popular Search Devices Mobile Phone PC or Laptop Methods of Search Prefer to choose from list Type in key search words
  4. 5. Difference in User Demographics China 25 years US 45 years
  5. 6. China 1 in 50 US 2 per Person
  6. 7. <ul><li>Scan entire results page </li></ul><ul><li>Prefer to click as opposed to type </li></ul>30 - 60 Seconds 10 Seconds China U.S.A. VS
  7. 11. <ul><li>China distinct from international </li></ul><ul><li>Internet search market </li></ul><ul><li>Google was slow to adapt </li></ul><ul><li>Baidu’s plan </li></ul>
  8. 12. <ul><li>Entertainment apps </li></ul><ul><li>Information sharing </li></ul><ul><li>Community building </li></ul>Customer
  9. 14. Delta Model
  10. 15. <ul><li>Baidu </li></ul><ul><ul><li>“ What can I help you do?” </li></ul></ul><ul><li>Google </li></ul><ul><ul><li>“ What I can do for you?” </li></ul></ul>
  11. 16. <ul><li>Baidu </li></ul><ul><ul><li>Home Court Advantage </li></ul></ul><ul><li>Google </li></ul><ul><ul><li>American Global Giant </li></ul></ul>
  12. 18. <ul><li>Baidu 3 options </li></ul><ul><ul><li>Auction based pay-for-performance paid search model </li></ul></ul><ul><ul><li>Fixed fee placement </li></ul></ul><ul><ul><li>Baidu Alliance </li></ul></ul><ul><li>Google </li></ul><ul><ul><li>Google Adwords </li></ul></ul>
  13. 19. <ul><li>Search Market in Beijing, Shanghai & Guangzhou </li></ul><ul><li>Search users with College Degree or over </li></ul>
  14. 21. one of the top four hot internet applications in China (72.3%) 1 st level 2 nd level, 3rd level <ul><li>Concentrate on mobile-internet market </li></ul><ul><li>Education/ Academic Resource </li></ul><ul><li>Internet-based instant messaging platform </li></ul>
  15. 22. <ul><li>E-commerce: (+ IM platform) </li></ul><ul><li>- C2C— put a link on baid.com + IM platform </li></ul><ul><li>- B2C/B2B —create a platform for advertisers on Baidu </li></ul><ul><li>Asian Market: </li></ul><ul><li>- Korea first (70.7% internet coverage), </li></ul><ul><li>- Then other countries in Asia (e-commerce platform + ad) </li></ul>System Lock in
  16. 23. What’s next?
  17. 27. “ We always distinguish ads from the search results or other content on a page. We don’t sell placement in the search results themselves, or allow people to pay for a higher ranking there.” Google Corporate Information, http://www.google.com/corporate/

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