Baidu's New Pay-Per-Click System - Phoenix Nest

       By: Tim Ding
Posted: 2010-03-02 04:01:54
Baidu's new pay-per-click system, called "Phoenix Nest," was launched in the second quarter of 2009. The idea behind Phoenix Nest is to make it so that it is clearer to users which results are ads and which are organic results as well as to improve the bidding system, giving advertisers more flexibility. Since it has been activated, it replaced the previous ad system's backend. However, the ad display system has only partially been converted. This obviously causes some confusion with their new pay per click clients.The classic Baidu pay-per-click display system places advertisements above the organic search results and makes these ads look identical to the regular search results except for "sponsored" being written in small faint letters where the "cache" is located for organic search results. This means users can see which results are ads, but will probably never notice unless they specifically look. At this point, Baidu is still using this classic system for some search queries while simultaneously using the new pay per click system for other search queries.Baidu's new pay-per-click display system is very similar to Google's system. Ads are shown above the organic search results and to the right. Ads above the organic search results and are displayed in a different format with a different background color making it a lot more obvious that they are indeed ads. Ads on the right side of the page are also very similar in format to Google's ads.With Baid's new pay-per-click display system, your ads will be eligible to appear on the top 3 positions of sponsored links (before Baidu's organic search results) and the spots on the right side. This essentially puts Baidu's sponsored links and organic search results look a lot like those of Google's with a blue link, two lines of text and a green URL.It is expected that Baidu will phase out the old ad display method within 2010.
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