Home > e-commerce, Technology > Baidu monetized Maps Platform with Local Ads before Google Maps

Baidu monetized Maps Platform with Local Ads before Google Maps

May 27th, 2016

Baidu is the biggest search engine in China. Searching on Baidu.com or Baidu Mobile App is very easy and contains a great amount of content. According to Baidu, over 10% of mobile Baidu search is for local services, and Mobile Baidu has MAU of 630 mn.

Baidu’s founding team believed then that developing bleeding edge Internet applications is the only way to survive and grow. Thus they developed their own mapping platform – Baidu Maps. As Baidu Map is equipped with search nearby functions, more and more users are using it as a local service discovery channel (Local Express) as they can find out the location and distance of service providers and navigate easily. This type of discovery also has a high conversion ratio (search converted into completed transaction). As Baidu’s management has discussed, over 40% of map queries were for local services. The following Mobile Screenshot Shows the use of Baidu Maps Advertising for Local Express Product users.
Baidu Maps Advertising Monetization Platform

Traditionally, local services are usually discovered through store displays and word of mouth. The development of O2O provides more channels to both users and merchants. Google also unveiled their Maps Advertising yesterday. Google built the AdWords system to help local SMEs promote their products which eventually was moved to a much larger bidding system rendering the Context Sensitive Advertising obsolete. However, with Maps Monetization proven successful by Baidu, Local eCommerce Advertising is back in focus even at Google. So the trend flow of innovation in the Internet economy has now reversed it is flowing from the East to the West 🙂

Comments are closed.