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JD.com, Baidu Cooperate on Data-based Precision Advertising

JD.com, 8/10/17

Chinese B2C e-commerce platform JD.com (Nasdaq: JD) and internet company Baidu (Nasdaq: BIDU) today launched a strategic partnership leveraging both companies' big data resources, user bases, and AI algorithm technology to give consumers and advertisers a more tailored and rewarding e-commerce experience.

Baidu's mobile search app Mobile Baidu is providing JD "first-level" access points to the hundreds of millions of mobile users in China who use Baidu to connect with the information and services they need, from its core search platform and suite of products ranging from mapping, music and video, to its popular chatroom platform Baidu Post Bar (Tieba). The access points allow users to make purchases of JD products without ever needing to leave the Baidu app, providing consumers a seamlessly integrated user experience.

Using the companies' data and sophisticated AI algorithm technology, Baidu and JD are developing cost-effective marketing opportunities that will increase conversion rates. A key focus will be enabling content partners to embed products from JD.com directly in their own content distributed on Baidu platforms, enabling readers to purchase items immediately from JD within the Baidu apps.

JD's insights on consumer behavior, combined with the reach of Baidu will help the companies effectively target consumers better than ever before. The partnership creates a powerful engine for brands and retailers to better understand their target markets.

As Baidu continues to strengthen its mobile foundation and leadership in AI, the company is looking to open multiple core AI capabilities and explore new applications for the technology to create more value. The partnership with JD.com is a major step forward in applying Baidu's excellent big data and AI capabilities to practical business use cases.

Editor's Note: JD.com has similar partnerships with over a dozen other leading Chinese internet firms, including one established several months ago with online and mobile news aggregator Today's Headlines. One access point typically added to the partnering apps is a link to the JD.com store; in both the Mobile Baidu and Today's Headlines apps, this link can be found by clicking on the "Me" button in the menu at the bottom of the app, and then clicking on the "JD Specials" link. While Baidu and JD.com will not share specific user data, they will share general user description tags, such as "baby/maternity products user" or "automobile enthusiast." Additionally, data generated from any purchases of JD.com products via Baidu's partnering apps will be shared by both JD.com and Baidu. In response to a telephone inquiry by Marbridge on August 11 about how much revenue the partnership with Today's Headlines had generated, JD.com VP of International Corporate Affairs Josh Gartner declined to provide any specific figures, but said the cooperation had "far exceeded expectations."

Keywords: big data online advertising mobile advertising wireless e-commerce Internet Baidu Baidu Post Bar BIDU JD.com JD

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