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Baidu Starts Transition to "Phoenix Nest"

Beijing Morning Post, 6/17/09

Online search site Baidu (Nasdaq: BIDU) quietly shut down part of its "Paid Search Ranking" last night and transferred a corresponding share of keyword management duties to its new system "Phoenix Nest". According to an internal notice to clients, the Phoenix Nest advertising system will gradually assume total responsibility for current advertising and keyword functions.

Baidu refused to divulge the timetable to transition from the "Paid Search Ranking" system, but industry sources say that the company is resolved to make conversion a speedy one.

Editor's Note: While Baidu's Phoenix Nest system will reduce the total volume of left-side sponsored links that appear together with natural search results, it will continue to offer at least the top three slots for paid results. The company has also remained cautious about committing to a specific time line or structure for the transition.

Keywords: online advertising Baidu BIDU Internet online search Phoenix Nest

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