Core Insights - The bankruptcy of Baidu's Hubei general agent "Century Baijie" marks a significant shift in the internet marketing ecosystem, highlighting the end of an era and the systemic crisis facing traditional channel models [1][4][12] - The decline of Century Baijie reflects broader changes in the digital marketing industry, driven by the transformation of traffic sources and the end of the rebate model that supported the agency system for two decades [12][18] Group 1: Century Baijie's Rise and Fall - Century Baijie started in 2003 with an initial investment of 150,000 yuan and quickly became a major player in internet marketing, achieving annual sales of 2 billion yuan and a net profit of 300 million yuan at its peak [1][3] - The company built a vast marketing network across Hubei, employing up to 2,000 people and serving over 130,000 businesses during its growth phase from 2005 to 2015 [3][4] - The sudden announcement of bankruptcy on June 30, 2025, was attributed to the transformation of Baidu's channel model, which led to the loss of its core revenue source [4][10] Group 2: Systemic Crisis in the Agency Model - The traditional rebate model that once benefited agencies like Century Baijie is becoming unsustainable, as Baidu has begun to lower rebate rates and increase performance requirements for its agents [14][15] - The shift in advertising budgets towards platforms like Douyin and WeChat, with nearly 70% of consumer advertising budgets now directed away from Baidu, has severely impacted the revenue of traditional agencies [10][16] - The restructuring of Baidu's agency system, including the cancellation of exclusive agency rights in several cities, has intensified competition and further weakened the position of traditional agents [16][18] Group 3: Changing Traffic Dynamics - The search traffic landscape has shifted dramatically, with Douyin capturing 70% of the mobile search market share, while Baidu's daily search volume has dropped to 300 million, representing a significant decline [7][10] - User behavior has transitioned from traditional keyword searches to more social and AI-driven content discovery methods, diminishing Baidu's relevance in the market [8][11] - The trust crisis surrounding Baidu's search results, with 78.3% of respondents expressing distrust, has compounded the challenges faced by the company and its agents [9][11] Group 4: Future Directions for the Industry - The decline of traditional agency models necessitates a shift towards integrated marketing services, where agencies must diversify their offerings beyond reliance on a single platform [19][20] - New business models such as performance-based commissions and AI search optimization are emerging as viable alternatives for agencies to adapt to the changing landscape [21][22] - The industry's future will likely favor agencies that can provide comprehensive, technology-driven solutions and demonstrate a commitment to evolving alongside market demands [26]