Baidu Forced Into Search Advertising Best Practices?

Posted by Joachim Bartels | Jul 25, 2016 | Baidu, China, Regulatory News, Search & Aggregation | 0 |

Recently China’s internet regulators issued a new rule for online advertising. The rule, which comes into effect this September, targets all online advertisers but most certainly targets Baidu (NASDAQ:BIDU) more than anyone. The regulation might be interpreted as a significant hit to the king of China’s search engines, but I argue that investors have little to fear, as the regulations bring BIDU more up to speed with the modern rule; BIDU was headed that way anyhow.

The best model for successful search advertising is of course Google (NASDAQ:GOOG) (NASDAQ:GOOGL), who has engaged in significant amounts of split tests to have arrived at the current model of search ads.

Source: Seeking Alpha

Note: China’s State Administration for Industry & Commerce last week issued new rules on the classification of Internet ads. From September, paid searches will be treated as Internet advertising for the first time and that revenue could be subject to an additional 3 percent tax.

About The Author

Joachim Bartels

Joachim C Bartels is a co-founder, director, head of information resources and Editor-in-Chief of BIIA. In his capacity as Editor-in-Chief he is responsible for the selection of relevant information content concerning industry insights, trends, technological developments, standards and policies impacting BIIA members in particular and the business information industry in general.

The BIIA library is approaching 10,000 news items and best demonstrated practices. BIIA members receive regular news alerts on key developments in the industry and the regulatory environment. The BIIA readership is widespread: between 4 to 5 thousand unique visitors access BIIA.com per month.