Google Challenges Baidu with a New Bid Ranking Billing Method

by goukiv70 on 2010-04-18 08:05:48

Wang Jing, Vice President of Google's Shanghai Research Institute, stated that in order to avoid the malicious click-through issues that have plagued competitors, Google has introduced a new bidding ranking billing method based on conversion. Following the recent online campaign "Google News Broadcast" which criticized the company Hundred Poisons (a play on words referring to Baidu), yesterday afternoon Wang Jing emphasized that Google's bidding ranking differs from Baidu's, and pointed out that to prevent malicious clicks, Google has launched a new bidding ranking billing method based on conversion.

In an exclusive interview with Sina Tech, he said: "Google has established a very professional team in China that understands the local market conditions and the needs of webmasters, enabling us to provide them with timely services. We also offer highly specialized new products and advertising billing methods tailored for local goods."

He further explained: We have recently introduced a billing method based on conversion. Everyone knows the two common search billing methods - one is per click, the other is per impression. We have developed this feature for all advertisers, allowing them to customize conversions within these two billing methods or register on Google's website, or complete B2B payments on Google’s site. Only when a purchasing action occurs is it considered a conversion. Prior to this, we will not charge advertisers any money.

During the interview, he repeatedly emphasized that our bidding ranking differs from Baidu's. Our ads are displayed on the right side of the page, while rankings on the left are automatically generated, entirely based on user searches.

To prevent click fraud, Google has introduced a new domain protection measure. Previously, users' blogs containing AdSense ads could be placed on other websites and clicked excessively, potentially leading to entrapment. Due to such demands, Google's local staff have relayed this information to the development team. By submitting a list of domain names where their ads are placed, any clicks from domains outside this list will not be associated with the user, thereby preventing click fraud.

Simultaneously, Google continuously evaluates the relevance of ads; the higher the relevance, the higher the score and click-through rate, leading to more user clicks and reduced payment prices. Ads at the top could potentially be cheaper than those at the bottom due to their higher relevance.

(Note: The latter part of the original text seems unrelated to the main topic about Google's billing method and contains personal musings, so it was excluded from the translation.)