Credit Suisse Taobao alliance will be equivalent to the Baidu Alliance

July 6th, according to foreign media reports, Credit Suisse on Monday in a research report that Taobao customers on the third party website shows Taobao sellers’ pay by effect (Pay-For-Performance) advertising. Taobao is expected in April 2010 this year, and the total is divided into Taobao customers will reach 1 billion yuan, and Credit Suisse expected 2010 Baidu alliance to members of the total is divided into.

Taobao guest, refers to help Taobao sellers to promote the Commission to promote the production of goods, Taobao customers on the third party website shows that the Taobao seller’s "Pay-For-Performance" advertising. According to media reports, Taobao in April this year, Taobao launched a large-scale promotion of customer service, partly due to Google’s exit from the Chinese market. Subsequently, Taobao attracted 400 thousand active owners to join, for Taobao to bring a search for the 30 million, and the members of the day to reach RMB 2 million yuan.

April 27th, Baidu announced the Baidu alliance will be divided into 10% to raise revenue to $15%. Credit Suisse believes that the move is part of the reason Taobao customers from the increasingly fierce competition. Baidu expects 2010 traffic acquisition costs will account for 13.2% of total revenue, with the first quarter of this year is quite. Credit Suisse expects 2010 of the proportion of 13%. Due to increased competition, in 2011 will increase to 14.7%. (end)

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