What is Baidu? Your Guide to Marketing on China’s Digital Hub

Just like Naver is known as the Korean version of Google, Baidu is the Chinese equivalent of Google. Beyond its primary search function, Baidu offers a full suite of services including Baidu Knows, Baidu Posts, and Baidu Maps, offering great advertising opportunities for brands.

If you are interested in using Baidu ads to promote your business, this Nativex guide provides an in-depth exploration. Discover how to make the most of this platform to enhance your business’s presence and engagement.

What is Baidu?

Baidu, often referred to as “China’s equivalent of Google”, is the leading search engine in China. Baidu provides users with relevant information through ranked search results. Over the years, Baidu has expanded its business portfolio and now offers various services in areas like mobile ecosystems, cloud services, and intelligent driving.

Who Uses Baidu?

The majority of Baidu’s users reside in mainland China, with different services targeting various user demographics. Baidu’s Mobile Ecosystem is centered around Baidu App, the top search-plus-feed app in China.

As of March 2024, Baidu App’s MAUs reached 676 million, a 3% increase from the previous year. Over 22% of Baidu’s users are adults under the age of 30, and the platform features more than six million Key Opinion Leaders (KOLs) across 26 different verticals.

What Do People Use Baidu for?

Mobile Ecosystem

Baidu App

Baidu App is the leading search & feed app in China with an MAU of 676 million as of Q1 2024. It offers users a seamless experience with single log-on access to a variety of information and services, and merchants a full suite of cloud marketing services.

By bringing together content and services from various third-party apps and websites, users can easily access search, feed, content, and many other services on their mobile devices.

• Baidu Search: Baidu Search works just like the other search engines. In addition to text inputs, it also supports AI-powered voice and visual searches. The voice search function integrates speech recognition, and the visual search enables users to find related content and services using images.

• Baidu Feed: Baidu Feed offers users a personalized timeline based on their demographics and interests, complementing the search function with advanced recommendation algorithms. Additionally, it offers a text-to-speech feature for hands-free content consumption and leverages its large traffic to distribute video content from third parties.

Internally Developed Knowledge-and-Information-Centric Products

• Baidu Wiki: Similar to Wikipedia, Baidu Wiki is China’s version of a collaborative encyclopedia compiled by experts in various fields. It features informative columns and videos, allowing users to edit entries as long as they can provide credible sources.

• Baidu Knows: This is Baidu’s Q&A platform where users can ask questions and receive answers from individuals, professionals, and businesses. Leveraging Baidu’s search function, users can easily find the information they are looking for. This platform also allows partners to connect with their target audience.

• Baidu Experience: This platform allows users to share their daily knowledge and experiences. They offer practical tips and interesting perspectives on topics like software, lifestyle, and games.

• Baidu Post (Tieba): Baidu describes Baidu Post as a “social media platform built on topical online communities.” It is similar to Reddit, where users can join topic communities to start forums, post text, images, and videos, and reply to others to form discussions. It is particularly popular among celebrity fans, online game players, and online novel readers for sharing topical discussions.

AI Cloud

Baidu’s AI Cloud includes two parts: (i) enterprise and public sector cloud, and (ii) personal cloud.

Enterprise and Public Sector Cloud: This sector is the driver for Baidu’s cloud revenue and it offers a comprehensive range of cloud services, including IaaS, PaaS, and SaaS. The IaaS service allows customers to scale their cloud computing needs without significant upfront investment. Meanwhile, PaaS and SaaS cloud solutions leverage Baidu’s unique AI capabilities to enhance efficiency and innovation.

Personal Cloud: The personal cloud is called “Baidu Drive.” Unlike Google Drive, which is typically used for work-related purposes, Baidu Drive is primarily used by users to store photos, e-books, and videos. It also offers features such as group sharing and data transfer. Although personal cloud services contribute a smaller portion of overall revenue, they still provide valuable functions for individual users.

Intelligent Driving & Other Growth Initiatives

Intelligent Driving

Baidu’s intelligent driving includes Apollo Go robotaxi fleets, Baidu Apollo auto solutions, and intelligent EVs, leveraging AI and other technologies to make vehicles more intelligent. The intelligent driving solution also integrates with Baidu’s smart transportation solutions to help users better understand road and traffic conditions.

Baidu Maps

Similar to Google Maps and Apple Maps, Baidu Map is a voice-enabled mobile app that provides travel-related services, including route planning, real-time traffic updates, and taxi-hailing. It also collaborates with businesses across various sectors and provides map solutions for the auto and transportation industries.

Other Growth Initiatives

iQIYI

iQIYI is a popular video-streaming platform in China that offers a wide range of dramas and shows. It was launched in 2010 and acquired by Baidu in 2013. As of the end of 2023, iQIYI had over 40,000 professionally produced content titles.

What Do Users Like About Baidu?

Baidu has always been the leading search engine in China, known for its advanced algorithms and data that help users find answers to a wide range of queries. Beyond its search capabilities, Baidu has built a comprehensive ecosystem offering a variety of services, making it an essential tool for many users in China.

User Yun Qifeng says, “Compared to other search engines, Baidu displays several times more content for the same query. Additionally, platforms within the Baidu ecosystem, such as Baidu Wiki, Baidu Knows, and Baidu Post, have strict review processes, ensuring the quality and reliability of the information.” User Wang Chong adds, “While some search functions have been taken over by social platforms like Douyin and Xiaohongshu, Baidu still has advantages in specific areas and can address nearly all search needs.”

Besides its search functions, Baidu’s full suite of services is very popular. User Mi Fei says, “Baidu meets the needs of most users in China, not only with its search but also with the various application services provided.” For example, users on Zhihu discuss why they still use Baidu Post, highlighting its sense of community. Even if a post was published years ago, there is still a good chance others will reply. Additionally, users on Baidu Post are more sincere in helping and having meaningful discussions.

Baidu’s cloud service is popular for its large storage capacity and ease of sharing, and Baidu Maps is one of the leading map services in China. In addition to these services, Baidu offers many more, making it an important part of daily internet use in China.

How Does Baidu Generate Revenue?

As of the first quarter of 2024, Baidu’s revenues reached RMB 31.5 billion ($4.37 billion), reflecting a 1% increase YoY. Baidu Core, which includes the mobile ecosystem, AI cloud, and intelligent driving & other initiatives, contributed over 75% of this revenue, totaling RMB 23.8 billion ($3.30 billion). Breaking down Baidu Core, online marketing revenue was RMB 17.0 billion ($2.36 billion), up 3% YoY, and non-online marketing revenue was RMB 6.8 billion ($935 million), up 6% YoY, primarily driven by the AI Cloud business.

Online Marketing Services

Performance-Based Online Marketing Services

Baidu’s pay-for-performance (P4P) platform allows advertisers to bid for priority placement of paid sponsored links to reach users searching for relevant products or services. Advertisers can choose between search-based and feed-based marketing services and set criteria such as daily spending limits and targeted user profiles.

Once all criteria are met—typically when a user clicks a sponsored link or feed-based ad—Baidu recognizes the revenue. For services based on performance criteria other than CPC, Baidu recognizes revenue when those criteria are met along with other applicable recognition requirements.

Baidu Union Online Marketing Services

Baidu Union is a program that expands the distribution of advertisers’ sponsored links and ads by utilizing traffic from its partners’ online resources. Services provided through Baidu Union partners include CPC, other performance-based marketing, and online display advertising, offered similarly to those on Baidu’s own platforms.

The company recognizes revenue from Baidu Union on a gross basis, while payments to partners recorded as traffic acquisition costs within the cost of revenues.

Online Display Advertising Services

Baidu offers online display advertising by combining text, images, videos, and displaying ads within search results and relevant feeds. For cost-per-time arrangements, revenue is recognized pro-rata throughout the contract period; for CPM arrangements, revenue is recognized based on the number of ad displays.

Collection

Some of Baidu’s online marketing service customers are required to pay a deposit before accessing the services, and the deposited amounts are deducted when users click on paid sponsored links or meet other performance criteria. The deposits are recorded as “customer deposits and deferred revenue.”

Sales incentives

Baidu offers sales incentives to third-party agents, such as price reductions on online marketing services if they meet certain requirements. These incentives are accounted for as variable consideration and are deducted from revenue.

Non-Online Marketing Services

Cloud service

As mentioned previously, Baidu offers enterprise and public sector cloud and personal cloud, on a subscription or consumption basis. Baidu also delivers cloud solutions to industries like smart transportation, finance, and manufacturing, energy, telecom, and media, where the revenue from these solutions is recognized over time.

Others

In addition to cloud services, Baidu recognizes revenue from various other services, including video membership services, content distribution, Apollo Auto Solutions, and hardware sales, among others.

How to Market on Baidu?

Branding Ads

Takeover Ads

Baidu Takeover Ads appear when users open the Baidu app and other Baidu-related apps. When clicked, these ads redirect users to a designated landing page. Supported formats include static or video full-screen and non-full-screen ads, shake-to-open ads, and grid ads.

One takeover ad can support up to nine landing pages to external links. These ads are sold on a CPT (Cost Per Time) basis, charging based on the duration the ad is displayed.

Brand Zone

Brand Zone is designed to enhance brand visibility using Baidu’s search resources. It uses innovative styles and engaging visuals to attract users during the brand awareness stage, creating a strong first impression and encouraging the development of a positive and lasting relationship with the brand.

Performance Ads

In-Feed Ads

In-feed ads are native ads integrated into content feeds on platforms like the Baidu app, Baidu homepage, and Baidu Post. These ads blend seamlessly with the content, providing users with a natural and engaging experience.

Leveraging Baidu’s extensive data, brands can deliver these ads to specific targets, reaching customers with high potential.

SEM

Baidu SEM bidding is based on Baidu’s search engine function to display business promotional information in search results, helping to convert web users into customers. Similar to SEM on other platforms, Baidu SEM helps businesses enhance their brand image and lower user acquisition (UA) costs.

Search Ads

Baidu Search Ads are prominently featured in Baidu’s search results. These ads follow a performance-based payment model, where advertisers only pay when users click on the ads.

There are three keyword matching types: smart matching, phrase matching, and exact matching. In smart matching, the system identifies and matches terms related to the key search term, and advertisers can select core terms and synonyms to reach a wide range of users.

Phrase matching includes submitted keywords or their synonyms within the user’s search queries, which helps advertisers capture traffic that includes the entire keyword phrase.

Exact matching ensures that submitted keywords and their synonyms precisely match the user’s search terms, allowing for more targeted advertising.

Advertisers can choose between manual bidding and automated bidding. Manual bidding operates on a CPC (Cost Per Click) basis, while automated bidding includes options such as eCPC (Enhanced CPC), oCPC (Optimized CPC), and CV Max (Maximize Conversion).

Market on Baidu with Nativex

As Baidu continues to hold its position as the top search engine in China, there are significant opportunities for advertisers to connect with potential users and enhance their brand visibility. If you are interested in Baidu advertising, get in touch with Nativex today.

We are an official marketing agency of Baidu, specializing in SEM strategy, keyword and copy innovation, creative production, and more. With our expertise, we can help you achieve the desired performance with Baidu ads.

Want to learn more about different social media app marketing in China? Take a look at our latest posts on the topic, including Bilibili marketing, Shopee marketing, Bigo marketing, Zhihu marketing, Kuaishou marketing, and Douyin marketing. You can also keep your eye on the blog for more updates as they happen.