Baidu.com (BIDU) is incorporating a lot of Ad agencies secretly, permeating through the traditional industry more.

Baidu.com (BIDU) is incorporating a large number of traditional Ad companies to strengthen the absolute control ability of commercials sales.
The news spread widely and rapidly recently in the field of advertising. It is obviously that Baidu.com, the NO.1 search company in China is seeking more security for own profitable prospect.

It was said that the targeted companies were original agencies of baidu's advertising service. With the increasing of the baidu's market share, the competitive ranking business, a service providing ad in the result of the search, accounted for 80% of its revenue as the most important source of earning.

A insider who knew of baidu's ad agents well said that the commercial companies got a good agent price from it when baidu was expanding their early selling structure at the beginning of the baidu business. But now these ad agencies have set up their own mature sales team besides good performance , lower cost than that of the baidu's sales department.

"It is the fastest method through acquiring for baidu's sales interest and cost control" said the insider.

The motivation of this action is clear. Baidu should provide much salary and option. The contrary situation is that the salary of the employee in the ad company is jsut 50%.The option is a dream for these staff of the ad agencies.

Baidu will group these companies and sales department as a dependent sales channel. According to the judgement , the laid off will happen. However, till now, there aren't any definite news in the scope of the baidu's ad agencies.

Now the incorporation plan is being implemented rapidly, surprising many insiders for the progress of the action. Some analysit even infers that they will acquire more good ad companies to enlarge its revenue source, that means " paying for earning ".

A realistic background: the wall street are putting more pressure on baidu with higher standard of profit. Baidu have to take some measure to show the determination of profit-making and cost-controlling.But the investor worried about it.