Through Baidu, Ms. Yao searched an airline ticket website. However, she ends up with being cheated out of both money and ticket. A glance at Baidu’s sponsored links(baidu phoenix nest ads)will make it clear that fraud airline ticket websites, maintenance-service website and pharmaceutical websites are everywhere to be seen. As more and more internet users have fell prey to such websites, many customers refer to Baidu as “Baidu it then you will be swindled”. CCTV reporter’s unannounced visits to Baidu found that Baidu’s bid ranking system, though having undergone a series of reform and transformation, showed little improvement: Baidu is still flooded by deceptive websites. The more they pay, the higher ranking they would get.
A Fraud Airline Ticket Website Ranks First on Baidu
In June, Ms. Yao, who lives in Hangzhou, planned to go to Chongqing. When searching for the “Qunar.com” on Baidu, Ms. Yao found another airline ticket website ranked first on Baidu, and the ticket on that website is nearly one hundred Yuan cheaper. She thought that as a major searching website, Baidu would not provide bad links to the users, so she purchased 2 tickets on June 25 through this website. But right after she paid, the order disappeared. Finally Ms.Yao found out that this website is nothing but a fraud.
CCTV exclusive coverage on baidu phoenix program loophole
Video source: Sina.com.cn
A month later, when searching for “Qunar.com”, CCTV reporter found that of all the new sponsor links on Baidu, only one is the real “Qunar.com”. And on another website named 20diy, the reporter bought a Eastern Airlines ticket from Wuhan to Guangzhou for 446 yuan. But according to the Eastern Airlines customer service staff, that booking was not at all successful. Reporter then reported this case to the cyber police, who said the 20diy was a fraud websites.
Baidu’s Sponsored Links Are Full of Fraudulent information and Fake PPC Advertisers
CCTV reporter found that in addition to the fraud airline ticket websites, Baidu’s Sponsored Links are full of other fraudulent information. Apart from home appliances products, the reporter found that although Baidu had cleaned up some of pharmaceutical keyword results that had been exposed by the media, some of the keyword results are still very suspicious. When entered “ the treatment of fatty liver”, the top 3 links turned out on Baidu page have been marked as “ sponsored links”, of which the third one was a website named souwu.com. Under state provisions, the approval number for health food and health food advertisement, health food labeling, and persons not suitable must be explicitly labeled on the products. However, on this website, no information can be found about the state approval numbers,
In addition to information about illegal health products, infrared perspective glasses , whose sale was prohibited by the state, are also publicized online through Baidu.
Baidu Staff Avail Swindlers with Loopholes
How do these swindlers make their websites to become Baidu’s sponsored links? CCTV reporter then contacted Baidu.
Reporters firstly asked people to make a false weight-loss product web site, and then took a counterfeited copy of business license and permits to Baidu’s Marketing Center in Hebei Province. Although a staff of Baidu correspondent has pointed out the documents provided is false, he later managed to figure out a solution to the “problem”.
The staff said that the website can get approval by its qualifications. And he also found a copy of a company in Shijiazhuang for the reporter to make reference to. “Make yours similar like this one.” Following his instruction, reporter fared smoothly in the application process. From signing the contract to the verification procedure, Baidu raised no objection, nor did it make any investigation. In this way, Two completely non-existent companies openly made their way to the Baidu’s sponsored link.
Reporters also asked internet professionals to transform the already registered website “bj-baojianjx.com” to one that sells weight loss products, which also succeeded.
Whoever Pays More, Ranks Higher
On November 15 and 16, 2008, CCTV’s “News 30″ program made a series of reports on the problems of Baidu PPC search. In December that year, Baidu launched the Phoenix Nest program to replace the much-disputed PPC system. Baidu claimed that Phoenix Nest system will help the companies to save more money. To find out the truth, reporters once again conducted a survey.
Reporter had registered beforehand in Baidu Beijing Branch and Baidu Marketing Center in Hebei province two Baidu promoted accounts under the name of two companies. In these two accounts the reporter had made exactly the same key words, ideas and other related settings. Then he clicked to find that one of the companies was the top on the page while another is in the third place. What kind of criteria does Baidu adopt to determine the ranking of two companies with exactly the same settings?
According to the Baidu Marketing Center in Hebei province, the ranking is determined by the quality of products and the bidding. But reporter found through experiment that the Beijing BaoJian Company, formally ranked the third on Baidu’s list, jumped to the first place with a bidding only one yuan higher than the formal champion Shijiazhuang Long Xiang Company.
Before, other customers’ bidding could be also seen on the PPC system of Baidu promotion, but after the transformation this was no longer the case. In this regard, Baidu’s officials said one can estimate the bidding by using some estimator tools. Through the estimating the reporter founder out as for the key word “CNC drilling machine,” one need to bid for 36 yuan for one click on the product to make the product to be first on Baidu’s searching list. A 10-yuan-bidding would only make it to the 18th. But when reporter tried to make a 10-yuan bidding, they found that they were already the top on the page, not in the 18th place. Seeing this, reporter continued to lower the price and found that the actual bid was only 6.4 yuan for its website to be the first on the list. In other words, if the reporter were to rank first according to Baidu’s estimating systems, he would spend 29.4 for nothing at every single click on its products. Baidu officials explained that estimating tool does not take other factors of the account into consideration. Therefore, it can only be a reference.
Reporters also found that Baidu’s choice of key-words setting is almost without any restriction, including many well-known trademarks. Reporter set the world-famous Quanjude as the promotion keywords, only to found that, in his astonishment, the link for the non-existed machinery company flared up right on the top of the sponsors links on the right side of Baidu webpage.
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