Monday, October 26, 2009

Switching over completely to Phoenix Nest by Dec 1

Expects a hit in revenue for about 2 quarters following
that. Around 70% of customers now use Phoenix Nest,
but only 20% of revenue is from it. The top left panel
ad is managed totally by Phoenix Nest, with some right
side keywords also managed by it. Most of the Phoenix
Nest revenue is from the top left panel ads.

Baidu had a somewhat similar change to its PayPerClick
algorithm almost exactly 3 years ago. Taking a short-term
revenue hit to position for medium-term market share.

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