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Rumor: Gaopeng Suspends Advertising on Baidu, Google

Beijing Business Today, 7/27/11

According to an industry source, Gaopeng.com, Groupon and Chinese Internet firm Tencent's (0700.HK) group buy joint venture, has recently suspended circulation of its ads on Google and Baidu's (Nasdaq: BIDU) paid search advertising platforms. The source said that Gaopeng is unable at present to continue paying the high rates charged by the two companies.

According to one advertising agency, Gaopeng currently pays more than RMB 15 mln in advertising costs between Google and Baidu, nearly half of the company's sales revenue. Ad spend by other group buy sites such as Meituan and Manzuo do not exceed RMB 10 mln per month.

Gaopeng's Baidu Brand Link ad still appears in Baidu search results for the keyword "Gaopeng."

One brand-name wristwatch retailer said his company finalized a contract several months ago with Gaopeng, but due to the number of stages of approval projects must undergo at Gaopeng, his company had yet to hear back from the site three months after the signing of the deal. By the time Gaopeng did eventually respond, wishing to launch the project, the particular model of watch to be advertised was nearly out of stock.

Keywords: Internet revenue online advertising Baidu Google Tencent 0700.HK BIDU Meituan Groupon Manzuo Gaopeng e-commerce group buying JV online search

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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