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Baidu makes money on the P4P (Pay For Placement) platform. Companies that want to appear on a Baidu search will set up an account where they bid money to appear higher in the search results when certain keywords are searched. The winners at auction end up higher in the search results, so they net more search impressions and, eventually, customers. Baidu benefits because companies constantly bid to appear in their search results (as its the #1 search engine in China), so that is a HUGE source of revenue.

They also do something that Google does, PPC (Pay Per Click). These are just paid ads that show up alongside certain keywords. The company placing the ad only pays when it is clicked, so Baidu has an incentive to make the ad appear more for better-paying companies.

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Q: How will baidu make money?
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