Print 7 comment(s) - last by Ranari.. on Jan 16 at 2:14 AM

Google wants growth a year after fight with China

This time last year, Google and the Chinese government were at odds after hackers accessed Google servers and hacked user emails accounts.

The confrontation saw Google threaten to uncensor its search results and reroute Chinese searchers to sites where search results were not censored. Google ultimately threatened to pull out of China, but in the end, it backed down and made amends with the Chinese government.

Google is now gearing up for a big push into the Chinese market. Reuters reports that Google is going to add new sales staff to its offices in China and will start targeting businesses that it wants to advertise on its web pages. Apparently Chinese web surfers are used to pages with lots of display ads, and the display ad market in the country does well.

Google Sales VP John Liu told Reuters in an email, "Display advertising is a big focus for Google globally and particularly in China, where it's already a big industry."

Google has a long way to go to grow its share of the Chinese market, which is currently dominated by Baidu. Darwin Marketing CEO T.R. Harrington said, "Do I think they can do it? Yes, the market is still growing very fast, a small piece of the big pie is still a big piece."

Google's search ads reportedly already account for half the revenue it makes in China. Google will also reportedly focus on small and medium Chinese businesses in its attempts to lure advertisers. A Google spokesman said, "We have many new export products being rolled out which will be more helpful for the local SMEs."

The real question is will Google get back to where it was before the trouble last year. Analyst Li Zhi doesn’t think so. He concluded, "Google's China market share won't return to the level seen before the incident, even though their revenue in China is increasing, the rate is much slower."

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By pugster on 1/14/2011 1:19:51 AM , Rating: 2
Even google can't stand the lure of making money in China despite its 'do no evil motto.'

By kingius on 1/14/2011 7:57:20 AM , Rating: 2
Well, they are a for profit company, so are you really surprised? Making money is the only motivation Google as an entity has.

By Hiawa23 on 1/14/2011 9:01:04 AM , Rating: 2
I guess you just can't grow your business in America. Sad to see nearly everything going China's way. Can America catch a break? People say where are the jobs, well, they are gone, just another example, & if you don't have the skills or education, you are going to be screwed at the bottom in this country in the coming years.

By Ranari on 1/16/2011 2:14:05 AM , Rating: 2
Google is growing in America, but in different ways. PPC and display advertising on home PC's is leveling out across western nations, because the future of advertising for companies like Google and Microsoft (Bing) is going to be in the mobile market (Windows 7 Phone, anyone?). This isn't a business driven decision to go mobile, it's a consumer decision - people love their cell phones.

But for a country like China which still has a large percentage of its population still in the technological "teething phase", this is an enormous market to potentially capitalize on. Not only that, but that's 1.2 billion people that could be using an Android based cell phone.

Google is smart to invest in China.

Google Gears?
By Jjoshua2 on 1/13/2011 3:07:40 PM , Rating: 2
Google Gears is actually a product. So it is up to grow in China?

By warisz00r on 1/14/2011 1:07:06 AM , Rating: 2

So much for talking crap
By chick0n on 1/14/2011 9:04:44 AM , Rating: 2
Suck it Google. so much talk but no action, I freaking knew it. Typical American style.

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