Rumor: Qihoo 360 SEM Resellers Cover 8 Provinces
Sina Tech, 3/18/13
A source inside Chinese Internet services and security software provider Qihoo 360 (NYSE: QIHU) has revealed that the company now has search engine marketing (SEM) resellers in Beijing, Shanghai, Zhejiang, Jiangsu, Guangdong, Hebei, Shandong, and Henan, many of them acting as exclusive SEM agents for the small-and-medium-enterprise market. Advertisers can select from three ad placement options: "Sousuo Tuiguang" (unofficial translation: "Search Promotion"), "Pinpai Zhida" (unofficial translation: Brand Express), and "Cai Ni Xihuan" (unofficial translation: "Guess-U-Like"). Qihoo 360 will gradually transition from its current Google-based advertising systems to its own ad systems.
"Search Promotion" uses paid search ranking to place ads from top keyword bidders ahead of natural search results for the keyword, and charges advertisers on a pay-per-click basis. "Brand Express," similar to Baidu's "Brand Link" product, features images and text introducing company, product, and sales promotion information at the top of search results. "Guess-U-Like" ads are featured on the lower two rows in the upper section of Qihoo 360's navigation site (http://hao.360.cn) in text link form and are displayed as banner images on Qihoo 360's video, humor, and music sub-channels. These, too, are charged on a pay-for-results basis.
A representative of World Online Advertising, Qihoo 360's exclusive SEM agent for small-and-medium enterprise advertisers in the Beijing region, said that a maximum of three ads can appear on top of Qihoo 360 search results, and another eight ads on the right-hand side of results. As there are still relatively few advertisers at present, ad space is available at favorable rates: ads atop search results for popular queries such as "buy homes" or "second-hand homes" would cost only RMB 0.6 to 0.7 at present, the representative said, rather than RMB 10 or more on Baidu (Nasdaq: BIDU).
According to the representative, Qihoo 360 has not yet opened sales of "Brand Express" and "Guess-U-Like" ads to resellers.
Editor's Note: Marbridge knows several key accounts agencies (as opposed to small-to-medium-enterprise market resellers) that are already running paid campaigns on Qihoo's Brand Express, but on an ad hoc basis (i.e. without signing an annual frame contract). Note also that World Online Advertising serves the SME advertiser market, while other ad agencies serving Beijing-based key accounts are working with Qihoo 360.
Keywords: online web directory World Online Advertising business model Internet online advertising 360.cn Qihoo 360 QIHU online search search advertising ad agency
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