Baidu Bidding Rank vs Baidu Pheonix Nest
In 2009, Baidu introduces new PPC program – Baidu Pheonix, with a aim to replace Baidu Bidding Rank. The old pay per click program of Baidu has been criticized both by the internet users and industry experts for selling organic search results to advertiser.
We have been launching PPC campaigns on Baidu, Google China, Alibaba and Alimama, so we will use a series of articles to introduce and compare the different PPC platforms in China.
How Baidu Bid Rank and Baidu Pheonix Nest looks like?
Baidu Bid Rank is also named Baidu classical edition. Baidu phoenix nest is also called Baidu professional edition. Below is an example of how these two ads look like on baidu search results.
This picture is the typical search results on Baidu.com, when we search the keyword “门垫(door mat)”, we can see, on the left part, 10 advertisers are fighting for Baidu bid rank spots. On the right side bar, 3 companies has bought Baidu professional edition(or Baidu Pheonix nest program). The second spot on the right side is bought by us. Baidu professional edition is newly introduced this year, so advertisers might not be familiar with it, so only 3 companies are bidding for this keyword.
Price difference is huge
For the keyword door mat, we need to bid as high as 8RMB to rank top 3 of bid rank, but for phoenix nest program, the bid price for top 3 is only 1RMB, and only 3 companies are bidding for the main keyword. Generally the bid price of bid rank is about 2 to 8 times to the price of phoenix nest.
Conversion rate and CTR comparison
Bid rank position is more noticeable than phoenix nest. We have studies the click through rate of top 3 bid rank and phoenix nest ads of different campaigns, we found that the CTR of bid rank is 2 to 5 times more than the CTR of phoenix nest. Plus, the bidding price of bid rank program is far more expensive, so the overall expense difference is really huge. We can’t tell generally which program has better conversion rate. But we have found that it is not cost effective to bid extremely high price for top bid rank spots, in those keywords, we would rather spend less to buy top phoenix nest spots than spend far more for bid rank spots. But if the competition for certain keywords is not that tough, and the bid price difference is not big, we suggest to buy keywords on both platforms and then judge the performance to optimize.
The click quality of phoenix nest program are higher than those of bid rank. Users can clearly judge that phoenix nest program is advertise while many users will mistake bidding rank ads for organic search results. In other words, users who click ads when understanding it is ad are more likely the prospects and many clicks of bidding rank ads are just looking for information and organic search results.