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China search engines face power struggle

14 Jan 2010

LONDON: If China Google quits China, then it leaves Yahoo and Baidu as the primary sources for accessing the Chinese search audience. This is according to Warren Cowan, CEO at Greenlight, a UK-based independent search marketing agency.

Cowan was commenting on Google's indication that it may cease to operate in China, following a cyber attack aimed at gathering information on human rights activists.

He added that, without Google, its 30% share would re-distribute to Yahoo and Bing, if they remain. He foresaw this as most likely to go to Baidu, which would cement its leadership position and further upset the balance of power, making growing in the Chinese market very difficult for Yahoo.

For advertisers looking to target the Chinese market, it means a greater dependency on foreign operators who are less familiar to them and less integrated with their ad operations. For the US and global advertising industry, it means ad dollars are going to go overseas into Chinese pockets, as opposed to strengthening the US coffers, too.