Google, is a leader in web search engines followed y yahoo and bing. It is one of the rapidly growing companies in the world. Google is controlling around 68% of the user queries in the US and hence proved itself to be the leader of all. The company is offering services worldwide. Due to the complicated character of the Chinese political economy, industry leaders tend to have a monopoly. Google is not working in China, therefore Baidu is China’s largest internet search engine with over 80 percent of the country’s search queries.

Process of Generating Income: Baidu Vs. Google

Generally speaking, Baidu and Google work in a similar manner. Let us discuss how they work.

Baidu generates most of its revenue from web-based services. The company offers platform-based service for displaying ads through their own website or other affiliated websites. The advertisers bid on certain keywords that would trigger their ad and the companies have to pay a premium placement amount to place their ads. Baidu is very popular and has the largest click impressions. Baidu also provides PPC service, just like google. Advertisers pay some amount to Baidu to place their ads against certain keyword while companies will be charged only if an a is clicked. Baidu has generated a revenue of $3.5 billion in 2012 from online marketing and advertisement services only which is 99.7% of its total revenue.

On the other hand, Google is generating a revenue of $50 billion from this advertisement(Adwords and Adsense). Google AdWords is an online advertising business for companies and advertisers to reach new and potential customers. Google allows firms to bid to place an ad and keywords related to the company websites. If anyone searches for the company, the related ad will appear on google. Google generates revenue on a CPC (cost-per-click) basis. As a result, companies are only charged a share if their advertisement is clicked.

Ranking Web pages: Baidu vs Google

Both use a link-based algorithm to rank web pages. The more the hyperlinks, the more it will be on top. The more the images, chances are it will be on least. In 1996, Robin Li built RankDex, the first search engine that used hyperlinks to measure the quality of websites it was indexing. In 1998 RankDex was acquired by a Dow Jones subsidiary Tradeline.com. Even before Google’s Larry Page had built the algorithm that would make Google the most popular search engine on earth, PageRank. Many claims that Baidu is a clone of Google. Yet Robin Li has been innovating in the space of search before then Google’s founders.

Contribution: Baidu Vs. Google

Google is a most-demanded search engine in the developed countries of the world and most of the developing countries too. China has confined its boundaries to Baidu only. If I talk about market share then Google is resolving around 90% of the queries worldwide whereas the market share of Baidu is just 1%.

Difference: Accessibility

The main difference between Baidu Vs. Goole is accessibility. Baidu is china’s Google while Google is world Google. China even banned Wikipedia in the region, so Baidu Wiki is serving there.

Final Takeaway

• Undoubtedly Google is the undisputed leader globally doesn’t matter if Baidu is a leader within chana boundaries.
• Baidu’s local attention on China remains a matter from an investor’s perspective, due to increasing confined competition.
• If Google can expand its share in the Chinese market, for sure it will add to Google business.

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