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
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
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."