What if a search engine blocked a company who cut back its PPC spending, from appearing in non-paid search results?
That is exactly what Renren Information Services is accusing Baidu.com, China’s leading search engine, of.
Renren says that Baidu.com basically blackballed the site, after the company dramatically lowered its PPC spending with Baidu
Renren is suing Baidu for the equivalent of $161,000 in damages, and the case in currently at trial in a court in Beijing.
For a public company with a valuation of over 7 billion dollars, that’s basically a small claims case.
But this case is putting the search engine’s reputation and business ethics on trial.
According to Reuters, “Renren told the court the number of visits to its website dropped sharply after it reduced its spending with Baidu,”
According to the Renren, a search for the company’s sponsored subsidiary had returned over 80,000 page results while it was heavily running its PPC campaign but when it reduced the ad buy substantially, the same search yielded just 4 results.
Would a public company be so brazen to tie in natural search results with the amount spent on PPC advertising?
Stay tuned.
Posted under Domain Parking, Domain Registrars, Domain Sales, Domain Services
This post was written by Andrew on April 24, 2009