1. CHINA SEARCH INTERNATIONAL, BAIDU ADVERTISING PRODUCTS AND SERVICES
MEDIA KIT – ALL BAIDU AD PRODUCTS – Q4 2012

2. China Search International is a value added-service provider
that allows western companies to launch into China. We help
companies to succeed on Baidu in China by adding our own
insights, recommendations and best practice. Leveraging our
direct relationship with Baidu as a representative in
AU, NZ, US and UK, China Search International can assist
clients launch a successful Baidu campaign that delivers
results

3. OPPORTUNITY IN CHINA

4. ‘INFLUENCERS’ ARE TALKING ABOUT CHINA
“Asia will become home to most of the
world's middle class by as early as 2025.
Not only becoming the world’s largest
producer of goods and services; becoming
the largest consumer of them. This is good
news for Australia and it should drive a
profound change in our thinking about our
economic relationship with Asia”
Source: Launch Speech for “Asia Century” White Paper

5. ‘INFLUENCERS’ ARE TALKING ABOUT CHINA
"The rise of Chinese middle
class will change the world…
Lucky for us at Crown, they
don't mind having a punt”
Source: News.com.au

6. THE CHINA ECONOMY
Of the world’s emerging
markets, China is often viewed
as the region with the greatest
potential. Home to more than
1.3 billion people and with an
economy which has grown at
around 10% per year since the
1980s China has fast become
the driving force of the global
economy
Source: Econsultancy; China, The Digital Market Landscape Report, October 2012

7. THE LARGEST INTERNET POPULATION IN THE WORLD
513 Million
39.9% reach of total population, & growing YOY
Source: CNNIC 30th Statistical Report on Internet Development in China, 2012

8. OPPORTUNITY IN CHINA
Source: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

9. PEOPLE IN CHINA, ONLINE
Key insight;
China… great
potential
Australian Online Population China Online Population
17m 513m
Source: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

10. CHINESE CONSUMER USES SEARCH ENGINES TO NAVIGATE THE WEB
While IM records the highest growth, search provides a broader, and more mature, audience
Instant Messenger 415.1
Search Engines 407.4 Others, 9.00% SoSo, 7.30% Google, 2.60%
Music 385.85
News 366.87
Video 325.31
Games 324.28
Blogs 318.64
Weibo 249.88
Email 245.77
SNS 244.24
Literature
Online Shopping
202.67
193.95 Baidu, 7
Online Payment 166.76
Internet Banking 166.24 8.00%
Forums/BBS 144.69
Group Deals 64.65
Travel Booking 43.07
Stock Trading 40.02
Source: CNNIC 30th Statistical Report on Internet Development in China, 2012

11. Key insight;
China is
searching and
consuming

12. Key insight;
Huge explosion
of users with
present scale
lifting by 10%
YOY

13. Key insight;
Heavy use of
search &
directories
similar to AU
composition

14. Key insight;
Similar
engagement
times to
mature
marketplaces

15. Key insight;
Online buying
big and will
get bigger

16. Key insight;
Only way for
China internet
penetration is
up

17. MIDDLE AND AFFLUENT CONSUMERS (MAC’S)
Year Households
2005 11,000,000
2011 50,000,000
2020 130,000,000*
*Approx. the same number as this classification in the USA
Source: Boston Consulting Group

18. MORE MOBILE MILLIONAIRES THAN EVER BEFORE
30% YOY growth (1.4M)*
5 fold increase in affluent
households by 2020*
Actively shopping for luxury
goods, gambling, travelling
abroad*
"more than half of the travellers surveyed from mainland China were intending to travel to Australia over
the next two years”**
*Source: Boston Consulting Group – China’s Digital Generations 3.0 , April 2012 **Visa PATA Travel Intention Survey 2011 (published 2012)

19. ADVANCED TARGETING AVAILABLE WITH BAIDU ADVERTISING PRODUCTS
Top twenty regions by millionaires 90% of China’s wealth can
be found in 20 cities and
provinces, 50% can be
found in 3 cities and
provinces alone
(Beijing, Guandong and
Shanghai).
However, wealth will
continue to flourish across
the country
Source: Boston Consulting Group – China’s Digital Generations 3.0 , April 2012

20. ACCELERATED GROWTH
500
Key insight;
400 ~35% of
300 China’s digital
population
200 have come
100 online in the
last 5 years
0
China India Nigeria Russia Iran USA
New Users 2007 - 2010 (MM) Total Users
Source: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

21. OPPORTUNITY IN CHINA
China already has the largest online population in the world at 513 million
users
Astonishingly that’s only 38% of their population, so their capacity for growth
is enormous
They’re not just growing in size – the Chinese are growing in affluence, the
number of millionaires is expected to grow 33% year-on-year for the next 5
years
The middle classes are expanding beyond the largest cities more rapidly & in
greater numbers than any market has ever witnessed. The number of Middle
and Affluent Consumer households in China will be the same as the US by
2020
As China's recent economic growth continues to surge, the demand for online
goods and services will continue to grow
Source: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

22. CORE BAIDU PRODUCTS 2012

23. CORE BAIDU PRODUCTS 2012
Baidu Sponsored Search
Brandzone
Baidu Mobile
Baidu Union (Content Network)

24. Baidu Sponsored Search
Brandzone
Baidu Mobile
Baidu Union (Content Network)

25. BAIDU SPONSORED SEARCH, PAID SEARCH
Each month, over 90% of China's internet users use Baidu
search.
With the daily query number reaching the hundreds of
millions. Through Baidu paid search, clients can reach this vast
audience of potential customers when they are actively
searching for information related to your client
By choosing specific keywords, ads are displayed at the exact
time users are looking for client’s products. Through
continuous monitoring and optimisation, you can obtain the
maximum return on your paid search ad investment.

26. BAIDU SPONSORED SEARCH, PAID SEARCH
How does it work?
Sponsored search listings that appear over-and-above the natural listing in the Baidu search results pages
Depending on the number of advertisers, listings are seen at the top of page, or running down the right-
hand-rail
Bid to position using max bids
Ranking algorithm similar to Google’s Quality Score metric
Three match types on keywords:
– Exact match - Baidu's relevant audit will check your keyword list to make sure your ad and landing page has high relevance with
these keywords. Exact matches show at the top of natural search result pages. Exact match can trigger an ad appearance only
when a user queries Baidu with exactly the same keyword in your keyword list
– Broad match - Broad match triggers ads by query with a relevant variation of the keyword you bought. These ads appear on the
right side of the search result page
– Right match - If you choose some less relevant keywords to target your potential customers, the only choice to pass Baidu
relevant audit is Right Match. Right Match ads list on the right side of the search result page, alongside those natural search
results, competitive position and bidding price with broad match triggered ads

27. BAIDU SPONSORED SEARCH, PAID SEARCH
Sponsored Search, Paid
Search Listing on search
results page
Sponsored Search, Paid
Search Listing on search
results page

28. BAIDU SPONSORED SEARCH, PAID SEARCH - AD SPECIFICATIONS
Sponsored Search Listings
Format: text
Heading – 25 Mandarin characters including space (approximately 50 English
Characters)
Description 1 – 40 Mandarin characters including space (approximately 80 English
Characters)
Description 2 - 40 Mandarin characters including space (approximately 80 English
Characters)
Ad specifications correct as of August 2012

29. Baidu Sponsored Search
Brandzone
Baidu Mobile
Baidu Union (Content Network)

30. BAIDU BRANDZONE
Brandzone is Baidu’s equivalent of a home page
take over. Brandzone clients can “own” the
space above the fold whenever one of their
brand terms is searched on Baidu. This
placement is recommend to clients who already
have a well known brand established in China

31. BAIDU BRANDZONE
How does it work?
Instead of just a search listing, Brandzone provides true brand exposure, ensuring users know who
you are long before they make it to your website
Best of all – Brands can also “own” their brand related keywords exclusively. No other Baidu
advertiser can use their keywords. Their competitors can no longer capitalize on their brand equity
There is no equivalent of this on other search engines
Impressively, Brandzone campaigns deliver average click through rates (CTR) of 50%. Compare that
to the Baidu SEM average CTR of 1% (or the Google SEM average CTR of 0.2%)
Half of everyone that views a Brandzone campaign interacts with it. That’s measurable proof of
brand awareness
Brandzone keywords are usually trademarked terms. Once Baidu grants use of a keyword to an
advertiser they own it exclusively. No other advertiser would be able to utilise their keywords

32. BAIDU BRANDZONE
Burberry is a great example of what is possible on the platform. Their Brandzone campaign (translated
from Chinese to English using Google Translate) shows videos, animated gifs, multiple product
photos, latest news, deep links and social media

33. BAIDU BRANDZONE
Brandzone ad below for Chanel shows their logo, latest news results, product promotions, links to
videos, their official television commercial, social media links, downloads and links to their iPhone app

34. BAIDU BRANDZONE
Rolex contains animated gifs and a full table of their biggest selling range for men and women

35. Baidu Sponsored Search
Brandzone
Baidu Mobile
Baidu Union (Content Network)

36. BAIDU MOBILE, EXPECTED LAUNCH 2013
230 million Chinese access the internet via a mobile device
How does it work?
Whilst the current mobile internet access figures are huge for China – they ere
getting bigger. By 2014 China will have over 957million mobile internet users
Baidu sells its advertising space for their mobile platform separately
As far fewer results are shown above the fold, the paid ad slots deliver very high
CTRs of around 3%
The need to be above the fold however, does result in greater competition
amongst advertisers. The result is a higher CPC for generic terms compared to
their PC platform

37. BAIDU MOBILE, EXPECTED LAUNCH 2013
Baidu currently only support Title, Description and Telephone extension but
will support downloads, emails and website links in the future
Title Title
Description Description
Telephone extension

38. Baidu Sponsored Search
Brandzone
Baidu Mobile
Baidu Union (Content Network)

39. BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES
Baidu Targetisement offers advertisers the
opportunity to display their ads on Baidu’s high
traffic properties

40. BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES
How does it work?
Targetisement works in much the same was as Baidu Content Network
placements, except that ads are seen exclusively on Baidu’s own high traffic properties
Minimum requirement to use Baidu Union is a current sponsored search campaign
Sites within Targetisement include:
Baidu Baike (China’s equivalent to Wikipedia)
Baidu Zhidao (China’s equivalent to Yahoo answers)
Baidu Hi – Social Networking site
Baidu Paste Bar - Forums

41. BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES
Targetisement banners, placements are available in a range of sizes and in JPG, GIF and SWF

42. BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES
Targetisement placement is a pop-up that must be dismissed by the user before they can continue to
their search results on Baidu paste bar

43. BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES
With over 600,000 websites and a detailed
audience targeting algorithm, Baidu display
banners are a fantastic way to reach exactly the
right users with exactly the right content to build
traffic and brand recognition
Most of the 600,000 websites are exclusive

44. BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES
How does it work?
Baidu tracks where web users go, what sites they visit, what search terms they use and what they say on
social networks
The result is a very rich detailed profile that advertising clients can use, to target exactly the right audience
for their products
Banner ads have an advantage over pure search results in that they can use imagery, flash, text and levels
of interactivity that a website user is more likely to engage with
It is also great for clients whose campaign objectives include extending brand awareness. The use of
logos, colours and imagery will do a much better job of extending the reach of a client’s brand than search
results alone
Video banners can even be used as “pre-roll” whilst Baidu users are waiting for online games to load
Once we define the audience profile – they will see client banners on every content network site they visit
API compatible to ensure all results could be tracked in 3rd party platforms such as Marin, DART etc.
Minimum requirement to use Baidu Union is a current sponsored search campaign

45. BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES
There are over 600,000+ sites within the Baidu Content Network. They cover a wide range of genres, ensuring your
target audience will be presented with client creative regularly. Most sites exclusive to Baidu

46. BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES
Baidu Embedded Video Ads, displayed pre-roll video while online game loading

47. BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES
Baidu display/image based placements, available in 18 different sizes, in JPG GIF or SWF formats

48. BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES
Baidu floating ads, placements move down page and stay in the users line of sight. Available in 3 sizes and in JPG GIF or
SWF formats

49. BAIDU UNION, DISPLAY CONTENT NETWORK - AD SPECIFICATIONS
Display Ads Pre-roll / Pause Ads
Format: JPG/GIF/SWF，text (Displayed when video / games is loading or paused)
Size: 55k
400x300
1. 55kb
468x60, 728x90, 960x90, 960x60, 640x60, 460x60, Format： SWF/JPG
580x90, 760x90 Length (Flash)：3-4 seconds
2. 250x250, 200x200, 336x280, 300x250, 360x300 CPU usage （Flash）：<25%
3. 120x600, 160x600
Floating Ads
Format: JPG/GIF/SWF
Size: 55k
1. 120x270
2. 120x120
3. 300x250, 250x200
Ad specifications correct as of August 2012

50. BAIDU BID MECHANICS

51. MAX BIDS AND RANK IN BAIDU PPC
Bidding Price, Quality Score and CRI
If more than one advertiser chooses the same
keyword, the maximum click price you bid is not the
only factor to get better position; quality score is
another important factor that affects your ad
ranking. Baidu ranks ads based on its
Comprehensive Rank Index (CRI)
CRI= Bidding Price x Quality Score
When more people click on your ad then others, it
means your ad has a better Click Through Rate
(CTR). Higher CTR helps you get a better quality
score, which results in you ads getting a better
position with lower cost. The following chart shows
how Baidu calculates CRI and decides the ranking
and click price for each account
Source: http://is.baidu.com/bidding_price.html

52. Q&A ABOUT BIDDING, KEYWORDS AND PROGRAM MANAGEMENT ON BAIDU
Q: How do they manage the bid process? Q: Will my Google, Yahoo, Bing keywords work on Baidu?
A: If clients have a bid management tool they can apply for an
API with Baidu. Otherwise they have to use the Baidu bid A: The important thing to note is that just because a keyword
manager works on major western based engines, this does not mean
they will work on Baidu. The Chinese public search in a very
Q: What technology is involved? different way. CSI can recommend keywords via a semantic
A: Either the agency /client's bid management tool or the and idiomatic translations that will drive meaning volume to
Baidu bid management portal the site
Q: Is it dynamic/real-time? Q: Can CSI help with the management of my Baidu search
program in China?
A: It's not real time - there's a delay of a few hours
A: CSI workes with many many value added partners that will
ensure your success in China. We are happy to recommend a
Q: Why has CSI set an initial CPC of $2? strategic partner that is right for your business
A: This max CPC has been set to ensure a guaranteed position
1 across all terms. Clients are free to modify this max bid by
using the Baidu control console or their bid management tool

53. HOW CHINA SEARCH INTERNATIONAL CAN HELP

54. HOW CHINA SEARCH INTERNATIONAL ENSURES SUCCESS
China Search International is a value-added service that is free to use, some of the value added
tasks that we can perform are:
Insights
Strategy
Implementation
Maintenance

55. HOW CHINA SEARCH INTERNATIONAL ENSURES SUCCESS
China Search International is a value-added service that is free to use, some of the value added tasks that we can perform are:
Speed-to-market in China, account set up in 4-6 weeks
Direct relationship with Baidu account managers in China
Budget recommendations and overarching strategy specific to Baidu
Insights into the Chinese marketplace and audience in terms of purchase habits, seasonality and method of
search-engine use
Keyword recommendations in local language or creation from scratch
Proposals including estimated volume and cost based on pre-selected keywords, estimated conversion volumes
based on your own in-house metrics
Recommended max bids
Ad copy translation, semantic/idiomatic translation or ad copy built in local language from scratch
Bid management API application process to Baidu
Full end-to-end account set up
Website and shopping cart/conversion funnel translation, working with strategic partners, if required
Consulting staff and contracts that are based here in Sydney, Australia available by phone or email

56. OPENING AN ACCOUNT ON BAIDU

57. ACCOUNT OPENING PROCESS
If you’re considering a search, display or Brand Zone online advertising campaign on Baidu, the team at China Search
International is here to help
Setting up an account on Baidu is a complex and sometimes lengthy exercise. China Search International makes this
process easy and fast for our clients
Please click to download detailed instructions on how to kick-off the process of setting an account up on Baidu
To pair with these instructions, China Search International has created a one-pager step-by-step guide to help keep
track of the process, please click to download. This will also give you some transparency on time frames and some of
the activity to expect in the future
We can help you get started by selecting and translating your keywords for Baidu
Send us any keywords you’re currently using for other search campaigns
If you don’t have an existing keyword list, we will help you develop a list of what keywords you should be using
We use the list to check how many Baidu users have typed in keywords to gauge demand for your goods and
services
This allows us to present a budget estimate. You can refine your keywords and budget until you have a mix you’re
comfortable with. We can recommend budget lines for Baidu based on key client KPIs and goals

58. SELECTION CRITERIA FOR CLIENTS

59. KEY PROSPECT CRITERIA FOR CLIENTS
Has products and services that can • Commercial motivation via sales to a new marketplace
be sold to China
Is currently active in PPC • Marketers understand value and performance of PPC to their business
Has a website this is in Chinese or • Open minded to adopt native language and China specific content (notes
at least can be easily translated into about English pages on the next slide)
Has an existing strategy to China or • Understands the scale of the opportunity and already has buy-in or is
can be persuaded to adopt one flexible to consider best-practice from China Search International
Existing budget lines that have been • Potentially can be persuaded to reduce inefficient media-spend in
existing markets and reallocate to China or has a specially budget-line for
maximised in existing markets China

60. NOTES ABOUT LANDING PAGES AND CONTENT
We have special approval to use English language landing pages paired with
Chinese keywords and ads
This will mean a first stage approach, enabling the launch of existing websites and
relying on the user’s browser to translate English to simplified Chinese. There are
considerations here which we can examine with you, please contact China Search
International for these aspects
We do recommend that all landing pages be in local simplified Chinese language
However, a site launch in English is can facilitate an information gathering exercise
while a website is being converted to Chinese language
China Search International works with strategic partners to facilitate website build
and translation, please speak to your point-of-contact for more information

61. TOP LINE STRATEGY AND KPI’S FOR CLIENTS

62. TOP LINE STRATEGY AND KPIS
Optimise
Strategise
Launch
•Set easy-to-achieve success metrics •Use China Search International to •Leverage China Search International
•Set the scene for a broad-based assist with creation and launch of to define optimisation metrics and
approach at the start in a brand new program benchmarks
audience •Draw on China Search International •Go back to search-101
•Use PPC sponsored search and to suggest semantic translation of •Refer back to success metrics of the
content network in tandem existing keywords and also suggest overall program
•Acquisition strategy for PPC and others that are specific to the brand •Refine based on performance-to-
brand strategy for content network goals
•Consider different themes across all •Look for best performing ads and
media, for example a keywords and expand
consumer, wholesaler and •Look for worst performing keywords
agent/retailer strategy with different and pause
goals and messaging for each •Optimise image/video based creative
•Build in expectations for client to goals
•Leverage the resources of China •Increase content network bids to
Search International to create China maintain max reach across the buy
specific Baidu campaign
recommendations

63. ROADMAP AND BUDGET PLANS FOR CLIENTS

64. ANNUALISED PRODUCT PLAN FOR CLIENTS
Launch & Test
Allocate a min spend ‘Always-On’ PPC
of $15K for PPC
Allocate +50% for
Allocate a min
Baidu Union (Content Network)
Baidu Union
budget of $15K per
Collect intelligence quarter Recommended Baidu Mobile
including ave budget-line of +50%
Start folding
CPCs, best
additional keywords of PPC budget Launching in 2013
Brandzone
performing
into the overall Broad based
keys, ads, offers Recommended
program, from approach to Baidu
Start with a broad budget-line of +200% Recommended for
Google, Yahoo, Bing Union with RON clients with
based strategy with of PPC budget
Leverage experience recommended established brands in
high max bids, $2 top Broad based
of China Search Phased approach China, or has used
bid recommended approach similar to
International to add using video, image tactical devices such
Max bid of $1 for Baidu Union, with
sector specific terms based creative as Baidu products to
Baidu Union with and initial data
into the program build
RON Brand building collection, followed
strategy utalising the by optimisation and
Leverage China extensive reach of refinement
Search International the Baidu Union
native language Content Network
keyword

65. BAIDU ANNUALISED BUDGET ROAD MAP – PER QUARTER BUDGET SUMMARY
Launch & Test $15K
‘Always-On’ PPC $15K per Quarter
Baidu Union (Content Network) $8K per Quarter
Baidu Mobile $60K per Quarter
Brandzone $50K per
Quarter
Spends recommended based on min spends per quarter with Baidu as of August 2012, except Content Network

66. BAIDU ANNUALISED BUDGET ROAD MAP – ANNUAL BUDGET SUMMARY
Baidu Sponsored Search - $60K
Brandzone - $200K
Baidu Mobile - $240K
Baidu Union (Content Network) - $32K
Spends recommended based on min spends per quarter with Baidu as of August 2012, except Content Network

67. MANY THANKS IN ADVANCE, WARM REGARDS AND BEST WISHES
GUY BAXTER, SALES DIRECTOR, CHINA SEARCH INTERNATIONAL
GUY.B@CHINASEARCHINT.COM
DIRECT +61 2 8417 2294
MOBILE +61 414 585 254