China Finance and FX Sector – Marketing in China with Baidu | China Search | NTENT

Finance and FX in China

Baidu Guide for FX and CFD

Market and Competitor Research

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Market Research

PC Search, 65.3%

Mobile Search, 19.8%

Wiki, 7.8%

Q&A, 3.3%

Daily search % by Baidu platforms

Searches for FX / CFD and noble metals on Baidu

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• There are 6 million daily searches on FX /

CFD / Metals keywords, more than 75%

comes from the main Baidu.com site

(mobile & PC).

• Baidu Wiki is becoming more popular as a

source for searching online trading terms,

as these types of portals continue to serve

as a key source of information.

Search Engine PC/Mobile Search

• 77.4% are brand-specific

• 1.0% reflect a direct willingness to make a

purchase

• 2.0% are for product pricing and

calculations

Chinese Wikipedia Pages

When looking for special features and

information

• 48.9% are for a product type’s information

and features

• 43.5% are for brand specific USPs

Chinese Q&A Bulletin Boards

• 1.7% of searches are for inquiries on how

to purchase

• 1.5% of searches are for comparisons

between different brands

Market Research

Site Category Specific Search Preferences For FX / CFD / Noble Metals Keywords

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Market Research

Key Search Terms as Part of a Search Engine Relevance Index

-

10,000

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Note: Keywords have been translated into approximate English equivalents for readability. These are not the actual search keywords.

- 200 400 600 800

1,000 1,200 1,400 1,600 1,800

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Note: Keywords have been translated into approximate English equivalents for readability. These English keywords are not the actual search keywords.

Market Research

Key Search Terms as Part of a Search Engine Relevance Index

Existing FX / CFD / Advertisers

There are currently 22 FX / CFD / Noble Metals trading companies whose accounts are active on

Baidu.

• 15 of these companies offer both FX and CFD only as instruments to be traded

• A further 6 of these 15 are using advanced Search products (such as Baidu Brand Zone), in

addition to committing spend to SEM and banners

FX / CFD / Options advertising metrics

• Average CPC: USD $0.86

• Average CTR: 2.31% (SEM); 60-80% (Brand Zone)

The best conversion timing window for FX / CFD / Noble Metals

companies has been found to be between 10pm and 12am daily.

For companies running on limited daily budgets, it is recommended to

optimize for this particular day part to ensure exposure to the right

audience for maximum conversions.

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Current Market Competition on Baidu

Market Competitor Reference

Acetop Precious Metals

ActivTrades

Anyoption

City Index

Easy Forex

eTrade Financial

Everest Global

FIBO Group Holdings Limited

Forex Club

FX Open

FX Pro

FXCM

Gain Capital

GCM Asia

GKFX

GMO Click

GWFX

Hanson Group

Hantec Markets (Australia)

Henyep (PIP Trade)

Hirose FX

IBKR-Interactive Brokers

IFX Markets

iKonFX

IronFX

KVB Kunlun

Roco Forex

Saxo Capital

Trader711

UFX Markets

Webi Trader

Worldwide Markets

FX / CFD / Options Companies with accounts on Baidu

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Competitor Keyword Case Studies (Anonymized)

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Keyword Case Study #1 (Translated)

FX And Futures Focused Trading Company

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Top 10 Impression Keywords

Foreign exchange transactions

Online trading platform

Equity investments

Futures

MT4

Financial

Stock account opening

Investment

Foreign exchange rates

Getting started with equity

investments

Top 10 Click Keywords


Online trading platform

MT4

Brand term

Stock investment starter knowledge

Forex software

Knock-rich network simulated stock

investment

MT4 software

Investment

Venture capital

Top 10 Conversion

Keywords

MT4

MT4 platform download

MT4 software

Metatrader 4

Forex software

Brand Term


Metatrader

Simulated futures trading

MT4 download


Keyword Case Study #1 Analysis

Company predominantly does FX and Futures trading, but impressions appear high for other keywords

not necessarily related (e.g. equity investments) as the site contains market news and information that

gets tracked on search engines.

These news and information sections serve as good pages to drive traffic the site as they usually rank

high on SEO or SEM for users looking for those terms.

The click behavior indicates that users who visit the company’s site are drawn to understanding more

about FX trading platforms and software.

The conversion behavior highlights the focused need of users to want to learn more about FX

platforms, and to download them for actual trading.

The takeaway from this example is to have clear sections on the site which

explain the different trading platforms and software available, and to

make it a seamless experience to download and start trading / open an

account to ensure maximal conversions to ‘live’ accounts.

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FX And Futures Focused Trading Company

Keyword Case Study #2 (Translated)

FX And Bullion Focused Trading Company

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Top 10 Impression

Keywords

Spot price of gold

US dollar foreign exchange

Stock simulation software

US dollar exchange rate


Stock simulated trading

Spot gold prices


Gold futures


Top 10 Click Keywords

Price of spot gold


US dollar foreign exchange rate

Simulated Stock investment

software

Spot gold prices

Simulated stock investment


Simulated stocks investment

software

Gold futures


Top 10 Conversion

Keywords

Simulated stock


Brand term

Exchange rate

Simulated stock trading

website


software

Brand term



platform

Foreign exchange companies

Keyword Case Study #2 Analysis

Company operates as an FX and bullion trading house, and has high rankings organically when users

search for spot prices for gold and FX.

A differentiator about this site is that it uses stock simulation software as its method to recruit new

users, although it does not explicitly trade in that market.

This strategy is played out by having an information heavy site which explains concepts of trading and

using simulation software as a means to practice technical analysis.

This strategy works to attract people looking for stock simulation software first (a less targeted

market), and then actually selling them trading on FX and bullion accounts – this behavior is reflected

in the conversion keywords.

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FX And Bullion Focused Trading Company


Initial Staged Roll-out Opportunities

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Initial Roll Out Suggestions

The following business and advertising strategies are a combination of the most successful and

effective methods used by FX / CFD / Metals trading competitors as a best practice guide for entry into

China.

We recommend firms focus on building brand awareness in China and to position itself as a the

premier platform for FX and CFD trading. CFD trading especially is a niche market that has yet to be

cornered, as CFD products are relatively new to Chinese investors.

Keep in mind that 77% of searches for this sector are brand specific, making this a key consideration

for all new brands in the market.

Our recommendations are based on the spend patterns of successful FX / CFD firms on Baidu

between 2012 and 2013.

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General Strategy


Loyalty 忠诚Purchase 购买Consideration 考虑Familiarity 熟知Awareness 知晓

• Content

Network

• Targetisement

• Brand Zone• Keyword Search (SEM)

• Baidu Wireless

(mobile)

For new brands in the China market, we recommend starting with a mix of SEM and banners, before

moving onto Brand Zone.


Focusing on brand keywords and range terms with selective use of generic keywords such as “FX”

and “CFDs”. Keep in mind that 77% of FX related searches on Baidu are for brand terms.

We can assist in providing a full keyword proposal including volume estimates.

The highest levels of keyword competition comes from noble metals terms such as “Gold trading”.

All keywords need to be in Simplified Chinese with some double up in English such as “FX” as savvy

investors will be familiar with the English translation. If targeting online sites in HK or Taiwan, include

Traditional Chinese translations.

The keyword list needs to be monitored to take advantage of short term trends. For example, in

recent months the keyword “bitcoins” has been very popular and provided good conversion results for

FX traders. These results dropped off sharply following the additional restrictions placed on bitcoins.

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Recommendations For SEM

Target banners by:

• Keywords as per SEM campaign

• Sector e.g. on financial websites or market

vertical websites such as luxury, property or

wine.

• Geotarget (Predominantly in the tier 1 cities

(Shanghai, Beijing, Shenzhen, and

Guangzhou) In addition, Hangzhou has the

third highest percentage of HNWIs after

Beijing and Shanghai)

• Demographics (predominantly male, tertiary

educated)

• Also target by day-part to capture the 10pm

to 12pm slot where the

majority of FX conversions take place

See http://wm123.baidu.com/ for more details of

how this works on the Baidu platform

Retarget banners by:

• Everyone who visited your website

• Searched for an FX or CFD keyword (using a

broader list than your current keywords – can

include banned keywords like “best” or “most

profitable”

• Clicked on one of your banners

• Searched for a competitor keyword

• Visited a finance related site


Recommendations For Banners – Baidu’s Content Network

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http://wm123.baidu.com/

Initial Roll Out SuggestionsTop Financial Web Sites in China

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Rank Website Daily

Uniques

1 Eastmoney.com* 7,680,000

2 Hexun.com* 3,500,000

3 10JqKA.com* 1,430,000

4 JRJ.com* 1,240,000

5 CE.cn* 1,230,000

6 cnFOL.com* 960,000

7 51Credit.com 940,000

8 Cngold.org 700,000

9 Stockstar.com* 660,000

10 Caixin.com 570,000

* Part of Baidu’s affiliate banner network

7 out of the top 10 financial

websites in China are part of

Baidu’s affiliate banner network

(Content Network).

Brand Zone

How does it work?

Brand Zone is Baidu’s equivalent of a home page take over.

Brand Zone clients can “own” the space above the fold

whenever one of their brand terms is searched on Baidu.

Instead of just a search listing, Brand Zone provides true

brand exposure, ensuring users know who you are long

before they make it to your website.

Best of all – Brands can also “own” their brand related

keywords exclusively. No other Baidu advertiser can use their

keywords. Their competitors can no longer capitalize on their

brand equity.

There is no equivalent of this on other search engines.

Impressively, Brand Zone campaigns enjoy an average click

through rate (CTR) of 60-80%. Compare that to the Baidu

SEM average CTR of 4.8%.

More than half of everyone that views a Brand Zone campaign

interacts with it. That’s a measurable proof of brand

awareness.

What to expect

Costs for Brand Zone are bespoke and offer a fixed price for

unlimited clicks. They’re based on the volume expected for

each keyword used. This is not a cheap option and hence

only cost effective for blue chip brands who can expect huge

traffic levels.

Keep in mind that Brand Zone campaigns can only use

keywords owned by the brand – and they can only be used on

exact match (not broad match)

So if you own a FX firm called ABC FX in San Francisco, you

would be able to use:

“ABC FX San Francisco” or

“ABC FX”

but not

“San Fransico FX” or

“FX”

Brand Zone represents the best possible exposure for clients who already have a “known” brand

in China. This service is generally utilised by “blue chip” clients whose brands are household

names.

Brand Zone - Desktop

This successful campaign by City Index includes logos, videos, animated gifs, latest news, and

deep. (Translated from Chinese using Baidu Translate).

Brand Zone Matrix

Brand Zone campaigns display on both desktop and mobile platforms as well as 4 of Baidu’s

most popular internal platforms.

Video SearchOver 120 million in daily

traffic

Mobile Keyword SearchOver 40% of Baidu’s audience

Desktop Keyword Search

Image SearchChina’s biggest image search with

over 250 million daily users

News SearchChina’s biggest news

search platform

Baidu KnowledgeZhidao - China’s biggest knowledge

portal (Yahoo Answers)

BRAND ZONE


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Phase 1 – Brand Building

While the initial spend seems high – the average

spend for firms in the FX sector is $80k USD per

month. Up until recently there was a minimum spend

of $50k /month set by Baidu but this minimum was

dropped in April 2014.

If your brand is not well known in China we

recommended 30% of the budget be spent on

banners which have a bigger impact when building

brand equity. Banners allow users to see your logo,

brand and begin to build the recognition new brands

need in China.

Given that 77% of searches for this sector are on

brand terms – this must be a key area of development

for all FX / CFD Advertisers.

In addition 7 out of the top 10 Financial websites in

China are on Baidu’s banner network.

Total Cost $50k USD per month

70% on SEM ($35k)

30% on Banners ($15k)

Duration 6-9 months


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Phase 2 – Loyalty And Market Dominance

Once the brand recognition has reached critical mass,

we would recommend increasing the monthly spend

to accommodate Brand Zone. We estimate this to be

between 6-9 months after implementation of an initial

SEM campaign.

Typically, a Brand Zone campaigns would increase a

campaign budget by approximately USD 30,000 /

month (pricing is bespoke and based on volumes for

brand terms on exact match).

As Brand Zone only works on exact match, brands

need to be quite well established before Brand Zone

is truly effective. Hence it is our recommendation that

these advanced products be used only after an initial

brand building exercise.

Once your brand is well established in China – you

can expect CTR of 60-80% on Brand Zone

Total Cost $80k USD per month

$35k on SEM

$15k on Banners

$30k on Brand Zone

Duration on-going

Summary And Next Steps

As a next step we would recommend sending us your current keywords (that you currently use on other platforms). The CSI team will then translate and volume check your keywords. Alternatively we can create a keyword proposal for you from scratch based on what we know works well in the China market.

In addition we need to start the account opening “whitelisting” process. This process can take 2 months while Baidu completes due diligence to comply with Chinese government regulations around money laundering.

To start the process we require the following documents from you:

• A copy of your company registration certificate

• A copy of your financial regulation license from FSA, CySEC or similar

• Signed copy of the Baidu contract

• A screenshot of your homepage (that clearly shows the url)

• Signed copy of the Site verification certificate (declaring your site to be the official site for your brand)

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How China Search International can help

Our Free Services

Our free services include:

• Translation of all documents for submission to Baidu

• Facilitation of the account opening process

• Provision of bespoke keyword lists where required

• Translation / localisation of keywords and ad copy

• Volume checking of keywords

• Loading of keywords into the client’s Baidu account ready for launch

• Bid Management API application on the client’s behalf

• Issuing of invoices in the client’s preferred currency and transferring of funds into the

client’s Baidu account.

• Full training on how to manage accounts on Baidu

(use of the Baidu console)

• Provision of research decks on relevant sectors and updates

in the Chinese market

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CSI / NTENT’s role is to help International companies launch on the Baidu platform.

China Search International

Overview

We are Baidu’s International Partner, not an agency. As a result all our services (including translations, volume checking, account opening and training) are completely free.

In fact – the only charge you or your clients will ever see from us is a 2.5% processing fee to cover our banking and foreign exchange fees. In essence we are paid by Baidu to sell Baidu.

With offices in Singapore, San Francisco, Sydney, and London we’ve guided hundred of clients through the complex Baidu process.

We’ve all worked previously at major brands / agencies in the UK, USA, and Australia so we understand your requirements and the importance of seeing ROI on your international investments.

The result is that we’re well-placed to help you launch on Baidu in the most cost-effective and hassle free way.

Some of our more well known clients

Baidu’s International Partner. Our clients are predominantly international companies looking to

capitalize on opportunities in China.

Getting in Touch

Should you have additional questions,

please don’t hesitate to get in touch:

Kevin J. Carney

VP, Agency Partnerships & Strategic

Accounts

[email protected]

(646) 561-8643

www.baiduint.com

http://www.baiduint.com