Chen Jiao: Dangdang stop searching for the unwise

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"Chen Jiao point of view" for the fledgling when, the wisest decision is not to cut off search ads, but to maximize the use of search advertising, improve conversion rate, through the user experience, the search flow brought visitors precipitation down. This should also include excellence, when, Jingdong and other electric business enterprises, such as the choice.

Recently, Dangdang CEO Guoqing burst material: from April 1, 2011 onwards, Dangdang will completely stop Baidu ads and search engine launch. Heard the news, I pinch a sweat for guoqing-Baidu has been when the most important promotional channels, the largest source of traffic, "weaning" really so free and easy?

According to the Alexa website traffic statistics platform data, when the traffic from the search engine accounted for is about 13%, which is almost the same as the largest content site Sina's ratio. And from the visitor's trajectory, visit when the current, respectively, about 18% and 17% of the people visited Baidu. In other words, when the flow of Baidu's dependence is extremely strong. In fact, the domestic only Taobao a platform of low dependence, but even so, from the search traffic still accounted for 6% of Taobao traffic.

To be sure, Internet users cover almost 100% of the search engine is still the largest E-commerce portal. Taobao shielding Baidu, it is not Baidu can not be brought to the flow of Taobao, but Alibaba and Baidu two companies to consider the competition, and Taobao has been frantically looking for sources of traffic to supply "weaning" after the flow of the vacuum, so that Ma Yun even then "not with Zhou 祎 related to the company business dealings" The oath was also left behind and began to buy traffic from 360.

We can imagine what will happen after April 1.

First, the traffic from Baidu's precise keywords will plummet. In the fourth quarter of 2010, when it came to earnings, its marketing spending was 21.2 million yuan, or nearly 100 million a year. In the end how many to cast Baidu, the outside world is not clear, but to Guoqing's words, probably "tens of millions of".

Second, less when this competitor, for excellence, Jingdong even including Ctrip, and so many e-commerce enterprises, there is no doubt that more than a chance, not only will greatly reduce the promotional costs, access to more user traffic, resulting in a significant increase in marketing returns. In this way, when there is a large degree of the possibility of being left behind, but also by the peer run market share. Over the years, it is not only a self promotion strategy but also a containment strategy for competitors to occupy the channel of search marketing traffic. It is a pity to take the initiative to give up this strategic location.

I guess, as with Taobao, when the new traffic import scheme will be enabled, such as the cost to other traffic sources. But when the new flow system is not high conversion rate, when will face the embarrassment of a tiger. And look around the current flow channels, e-commerce boom, so that its flow prices generally rise, by contrast, Baidu is undoubtedly the most stable and most secure one. Taobao is not a general monopoly advantage when, to emulate Taobao, a lot of variables.

When earnings showed that the company's net profit fell by 33.2% in the fourth quarter of 2010. Cutting Baidu's promotional budget, when it is possible to boost profitability in the short term, is also the main reason for making decisions, but when it has to be faced with a severe test.

In fact, for the fledgling, the wisest decision is not to cut the search ads, but to maximize the use of search advertising, improve the conversion rate, through the improvement of the user experience, the search traffic brought to the visitors precipitation down. This should also include excellence, when, Jingdong and other electric business enterprises, such as the choice.