Li Yanhong: Baidu's spot price rankings earn tens of millions of yuan a day.

Li Yanhong, chairman and CEO of Baidu, recently visited the CCTV economic channel "Dialogue" program to talk About Baidu's development goals over the past decade.
When talking about Baidu's bidding ranking model, Li Yanhong said that by clicking to collect money from small and medium-sized enterprises, advertising fees seem to sit by and collect money. By the end of, Baidu had more than 10 million revenues each day.

Blushing to transition

It is reported that Baidu once provided search services for portal websites such as Sina and Sohu, But it suffered from the pressure on the portal website and the arrears of technical service fees. In the winter of the Internet, websites only think about "the cheapest technology", rather than "the best technology ". This gave Li Yanhong two bold ideas: Launching Baidu's own website and trying a new business model-bidding ranking.

Li Yanhong's idea was quickly opposed by shareholders and colleagues. Many people tend to keep their existing incomes, rather than suddenly become competitors for the customers they have already developed. On the other hand, although Google did not enter China at the time, Baidu launched its own independent website, which is equivalent to directly competing with the world's best companies, which also makes many people hesitate.

Baidu's Board of Directors held a heated discussion, but Li Yanhong was furious and insisted on promoting the above two decisions throughout the company.

Recalling this process, Li Yanhong said that a shareholder once told him that Li Yanhong's attitude was not the theory that moved all the shareholders present. Li Yanhong cannot help but lament that many things in the company cannot only rely on reasoning, but must also demonstrate the determination of entrepreneurs.

Bidding rankings sit by and collect money to earn 10 million yuan a day

It is reported that the spot price ranking is a pay-as-you-go mode with relatively low costs. The spot price results appear at the top of the search results, which is easy to attract users' attention and clicks. Therefore, the effect is remarkable.

Despite the controversy, Baidu has switched to the new advertising system "fengchao" in December. The bidding ranking model still plays an important role in the development and growth of Baidu.

When talking about the spot price rankings, Li Yanhong said that the mode of paying advertising fees to small and medium-sized enterprises by clicking is like sitting on the floor to collect money, not affected by day and night. Although early bidding rankings did not contribute much to Baidu's revenue, the results gradually showed up. According to Baidu's 1.2 billion RMB in the first quarter of 1000, the daily spot price rankings brought Baidu more than million yuan in revenue.

Li Yanhong said that after the development, when Baidu's user scale grew bigger and more information was searched, the original spot price ranking model became too simple. Baidu launched fengchao ". Compared with bidding rankings, "fengchao" can solve the problem of confusion between common search results and bidding ranking search results, and help enterprises effectively improve the promotion effect.