If you follow closely on TagEdge, you’ll notice that the frequency of my blog entries on Baidu. No doubt Baidu is a company that surprised a lot of people and they have done very well especially in the Internet arena in China. Sometimes when I talk about Baidu, I know their success can considered virtually assured. But are Baidu really as competition-proof as we think?

As far as I observe, Baidu never been inflated their egos. They have increased their competitive weapon, Baidu Union commission scheme to a much higher payout in order to reward those loyal Web sites that used the Baidu advertisements. A Web site that used Baidu advertisement will be entitled to a minimum 50% to a maximum 84% of commission payout when it meet the criteria set by Baidu. In contrary, before the change took in effect from September 1, 2007, the maximum payout for this Baidu pay-per-click is only 70%. Under the new commission scale, Baidu agreed to payout until 84%, an increased of 14%, as shown in the above picture.

This move will make any Baidu would-be competitor increasingly difficult in penetrating the China search engine market. Meanwhile, there are some articles reported that Baidu have launched its “Baidu TV,” a sort of video advertisement where the selected Web sites by Baidu can embed this type of video advertisement onto their sites, albeit that I haven’t seen it yet, I can understand why the record of Baidu competitors are so dismal when they compete with Baidu in the past.