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Chapter 1307 Traffic hijacking(2/2)

Zhou Buqi has also not cared about domestic front-line business for a long time and does not know the specific data. He only knows that Baidu broke up with Alibaba after it started to develop e-commerce.

"Now, Baidu and Taobao are mutually blocked. If you search for Taobao products on Baidu, it should be because Taobao is short of traffic, right?"

Li Kaifu said: "Google's largest revenue from search advertising is from retail and e-commerce. Among domestic c2c e-commerce, Taobao controls nearly 80% of the market. According to Google's revenue logic, Taobao should be the search platform. The largest source of income. But Taobao has blocked Baidu’s crawlers.”

Zhou Buqi smiled and said: "But Baidu's revenue is still three times that of Weidian."

"Mr. Zhou is being humble." Kaifu Li is deliberately making friends with this Internet tycoon. "Weidian's advertising is very restrained, but in the long run, e-commerce companies have to search. If Baidu cannot ease the relationship with Taobao, In order to make up for this lack of profit, Baidu can only make more money from other aspects."

Zhou Buqi likes to chat with insiders.

This can indeed bring new ideas to people.

It seems that Baidu's medical advertising incidents in the next few years have something to do with Alibaba. Taobao will not pay Baidu advertising fees, and they will have to find another way out.

Those who want to be e-commerce have to search. No wonder Baidu wants to do it.

Zhou Buqi became wary and asked: "How is the cooperation between Google and Taobao?"

"Not very good." Li Kaifu shook his head, "I think this is something we should be cautious about."

"How to say?"

Zhou Buqi asked unambiguously.

This is the dilemma of multinational giants. If foreigners are sent to manage them, they will not understand the local culture enough and may not do well. If they are managed by local people, the cohesion and loyalty will not be enough, and they may become like Li Open your arms like this, turning your elbows outward.

Li Kaifu said: "Taobao is different from eBay in that it is a free e-commerce platform. Taobao's current profit model is actually the same as Baidu's. It is bidding for advertising rankings. It is essentially a business of selling traffic. The exposure ranking of different products is controlled through advertising. So from a business model perspective, this is a head-to-head relationship with Baidu.”

Then he gave another example: if a merchant placed an advertisement on Taobao, the product ranked first. Another merchant placed an advertisement on Baidu, ranking first on the search page.

This creates a contradiction.

When Taobao's traffic is obtained through Baidu, that is, users enter the shopping page through Baidu search... This is equivalent to bypassing Taobao's own advertising recommendation system.

Once the effectiveness of their own advertising recommendations is not good, merchants will vote with their feet and go to Baidu to do bidding rankings. This is equivalent to hijacking traffic and Taobao will have no money to make.

Therefore, the separation of Taobao and Baidu is inevitable.

Baidu is because e-commerce players need search and want to grasp the core lifeline. Taobao also wants to control the core lifeline in its own hands and does not want to become a trading center.

Neither side wanted to become a vassal, and both wanted to control the "core assets," so conflicts broke out.

Looking at it this way, micro-dots are also very dangerous!
Chapter completed!
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