Get the free version of Marbridge Daily delivered to your inbox

Click here to subscribe

CCTV Expose Targets Baidu for Fraudulent Paid Search Ads

China Daily, 8/16/11

A news expose on China's national broadcaster CCTV's finance channel CCTV-2 yesterday evening alleged that Chinese internet company Baidu's (Nasdaq: BIDU) Phoenix Nest search advertising platform had a number of loopholes allowing scam websites to place search ads on Baidu targeting Chinese users.

CCTV-2 claimed that Baidu customer service personnel were assisting companies in applying to join the Phoenix Nest system using fraudulent credentials. Products from the weight loss, pharmaceutical, and other heavily regulated industries were easily able to pass the Baidu auditing system and have their advertisements placed online via the Phoenix Nest system.

Editor's Note: CCTV-2 also claimed that current search results generated by Phoenix Nest are not substantially different from those under Baidu's previous paid search ranking system Baidu Classic. Aside from right-hand column advertisements, paid search ranking ads still appeared above natural search results in the left-hand column as before, only now with the words "advertising link" displayed in small print below each search ad.

Keywords: online advertising scandal Internet scam Phoenix Nest Baidu CCTV-2 CCTV BIDU search advertising online search


Please note, all fields are required.
None of your personal information will be shared with third parties.



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.

Marbridge Daily Premium

Interested in gaining full access to all newsletter articles and the Marbridge Daily archive? To learn more about premium subscription options, including pricing, please:

Click here

Marbridge Consulting RSS Feed

Marbridge Reports