There is a saying in the Chinese medical industry that 80% of private hospitals in the country are from the Putian system. The Putian Department Hospital is mainly engaged in gynaecology, male subjects, dermatology, plastic surgery and beauty, and is known for its good at marketing. However, it has been widely criticized for its exaggerated publicity, over- medical treatment and arbitrary charges.
In the past ten years, with the rise of Baidu and the monopoly on search engines, Putian Department Hospital gradually used Baidu bidding ranking as a major platform to attract the source of the disease. The medical industry has also become one of the three major sectors contributing to Baidu's advertising revenue. Therefore, Putian is known as the “Baidu Big Gold Masterâ€.
Baidu and Putian have experienced "war" - Putian has to change the old image, turn the attention and investment in advertising to provide consumers with more professional, cheaper and more effective medical services; Baidu is also determined to raise the threshold. Eliminate the worst medical services, and with the transformation of mobility, gradually enrich the income model and get rid of the dependence on the auction ranking.
But the reality is that Baidu’s realizing crisis in the mobile era has once again turned to the Putian department, which has a great reputation and stains. The Putian Department is eager for Baidu’s high conversion rate, and the two sides have become a stubborn community of interests.
Wei Zexi, a 21-year-old computer student at Xidian University, died of a synovial sarcoma on April 12. In the process of seeking medical treatment during his lifetime, he saw the top-ranked Beijing Armed Police Corps Second Hospital through Baidu search, and was deceived by its “bioimmune therapy†high efficiency and “Stanford Technology†and other publicity, spending more than 200,000 yuan on treatment. Without any effect, the condition deteriorated rapidly and the timing of other reasonable treatments was delayed. After the incident was reported by the media, the false propaganda of Putian Hospital, the profit-seeking ranking of Baidu search, and the confusion of foreign contracting of military hospitals, etc., once again caused widespread concern.
Putian is the biggest owner of Baidu
The Putian Department has a history of more than 30 years. From the small advertisements on the street to the advertisements in newspapers and televisions, and after the TV advertisements were banned, the Baidu bidding rankings were greatly changed. The advertising and marketing model of the Putian Department has been changed. From 2003 to 2011, the seventy-eight years that the Putian Department turned to Baidu was also the fastest growing year for Putian Hospital. It can be said that this combination of inductive over-medical, although the industry's reputation is not good, but helped both Putian and Baidu to make money.
The Putian Department contributed a lot to Baidu’s advertising. In 2013, Liang Jianyong, secretary of the Putian Municipal Party Committee, said: “Baidu’s 2013 advertising totaled 26 billion yuan, and Putian private hospitals did 12 billion yuan.†Baidu strongly denied this, but a person close to Baidu said, “Although not More, but also a lot."
An analysis from JPMorgan Chase estimates that medical-related advertisers account for about 15%-25% of Baidu's total revenue in 2014. The Putian system accounts for about one-third to one-half, which is 5%-12% of Baidu's total revenue. In an interview with BARRONS, an analyst at Nomura Securities also estimated that the private hospitals in Beijing, Shanghai and Guangzhou accounted for 10%-15% of Baidu's advertising revenue. This time, the conflict between Putian and Baidu. It may bring a negative impact of 3%-6% on Baidu's revenue growth.
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