What are the unspoken rules of Baidu’s bidding agents?

Agents

1. Before the peak season, agents will increase consumer income by signing consumer rebate agreements with certain competitors in the industry.

First, stimulate them to spend more, so that these companies will increase their bids and compete for rankings, forcing other competitors who have not signed rebate agreements to follow suit, otherwise you will not be able to compete, thereby pushing up the average click price of the entire market.

Secondly, before the peak season arrives, after raising the average price of the entire market, the agents stop giving you and your competitors rebates. Under the dual pressure of performance pressure and high bids from your competitors, you have to bite the bullet and maintain the current average price for promotion. Your competitors do the same. [For example] the total market traffic for 3 months is 100,000 clicks (20,000 clicks in the first month, 50,000 in the second month, and 30,000 in the third month). Without stimulation, the market average price is 5 yuan, and the total consumption is 500,000. However, if you stimulate each company to give a 30% rebate in the first month, the average price will be raised from 5 yuan to 8 yuan in the first month, and maintained at 8 yuan in the next two months. 100,000*80,000-20,000*80*30%=752,000. With the total market traffic unchanged, you will earn 252,000 more than before.

2. Agents place bids for their own customers at the end of a quarter or the end of the month, especially at the end of the last month of a quarter. Even if consumption does not drop, the promotion effect will decline significantly.

3. The agents will integrate the data from various companies and rank them to tell you your consumption ranking in this market. Even if you rank first in the consumer market, they will rank you second or third to make you feel a sense of crisis and consume more.