Google drops to third place in China. Time to go home?

[Martian2]

This information is dated and from March 23, 2010. Following the Google fiasco in China (i.e. Google challenges China on political grounds), Baidu's stock market value has soared. I will post an updated valuation chart when it becomes available.

Alibaba Passes Google in China Online Ads - China Real Time Report - WSJ

"Alibaba Passes Google in China Online Ads
December 9, 2010, 4:57 PM HKT

Research firms have already noted how Google’s slide in China’s online search market has been good for the company’s Chinese rival, Baidu. Now it appears Google may have given up ground to another Chinese internet giant: Alibaba Group.

Jack Ma, chairman and chief executive officer of the Alibaba Group. Ma’s company has leapfrogged Google to the number two spot in China online advertising market share behind Baidu, according to a report. (Bloomberg News)

In a breakdown of Chinese online advertising market share, Beijing research firm Analysys International says Alibaba has overtaken Google for second place behind Baidu thanks in large part to its online shopping unit Taobao.

Alibaba now owns a 9.3% market share and the number two spot in China’s online ad market, according to Analysys International (Word doc). Meanwhile, Analysys says, Google’s share fell 2 percentage points from the second quarter, when it held the number-two spot, to 8.9% in the third quarter.

Google also narrowly missed falling another rank. Internet portal operator Sina, in fourth place, had an 8.89% share that put it 0.01 percentage points behind Google, according to Analysys.

Baidu ranked first by a wide margin, with a 30.1% share putting it more than 20 percentage points ahead of the nearest competitor.

The loss of advertising market share marks a steady erosion of Google’s presence in China since the company relocated its mainland China search service to Hong Kong in March, citing frustrations over hacking and censorship."

 

[prototype]

is Google even active in china currently.I thought they had packed their bags already

 

[Martian2]

is Google even active in china currently.I thought they had packed their bags already

Google attacked the Chinese government and yet, they're determined to stay in the Chinese market. Go figure.

China A 'Very Important Market' Says Google | ITProPortal.com
"China A 'Very Important Market' Says Google
19 October, 2010

Google has reaffirmed its commitment to China, describing it as one of the most important markets for the company."

 

[qwerrty]

i think the current market cap for baidu is around 38B and 42B for tencent.

 

[BigTree.CN]

To be fair, Google search is a powerful web search engine and Google is a dedicated IT company with advanced technology and innovative spirit. It could have been a ideal business partner for Chinese companies without its misbehaving in the name of freedom.

But the reality is no one is willing to take the risk of doing business with a company who refuses to abide by the law of the host country.

Nonetheless, it is too soon to predict Google is gonna leave China, I am pretty sure it will stick with Chinese internet market in the future. We need to understand that hunting for profit is the nature of company. Google challenged Chinese authority in the first place because of this nature and it is gonna stay in China for the same reason. Chinese market is too lucrative for any company to ignore and give up.

The episode directed and put on by Google proves that there is only one thing that separates Google from other companies who only care about money, which is that Google, unlike other companies, is good at acting like a innocent hypocrite.

 

[Chinese-Dragon]

Google attacked the Chinese government and yet, they're determined to stay in the Chinese market. Go figure.

Yes, Google "threatened" to leave China...but it was just an empty threat.

In fact they are still here, operating out of Hong Kong SAR. They just love their profits too much.

 

[peaceful]

To be fair, Google search is a powerful web search engine and Google is a dedicated IT company with advanced technology and innovative spirit. It could have been a ideal business partner for Chinese companies without its misbehaving in the name of freedom.

I don't see any real big leap forward in terms of technology from google.

Their search engine is clearly a third class junk when comes to Chinese. When their crap can't even correctly handle Chinese segmentation in a half decent way, I fail to see how it is "powerful".

They have interesting services, gmail is about 5% better than hotmail, google map bought from a sydney based company is useful. but I don't see anything as innovative as MS windows.

The facts here is simple:

you can live without google products, but you can't do so without microsoft products.

 

[peaceful]

is Google even active in china currently.I thought they had packed their bags already

they never packed their bags, they never left.

their PR propaganda is just propaganda. nothing real.

 

[Martian2]

"If one looks at China with a population of 1.3 billion people, it is easy to see that there is a large potential for future expansion of Internet users in that country. Whereas others countries like the U.S. may see limited growth when it comes to Internet users. We can call China the new frontier."

Chinese Internet Company Profits Significantly Trump American. ? Resonance China

"Chinese Internet Company Profits Significantly Trump American
September 28, 2010 By Kyle

From GWC‘s Chinnovations on The New Media: Leave Google aside, the margin of the rest of the global players seems to be weaker than that of the China internet companies. And in China, NetEase & Tencent have shared the largest portion of the internet market collectively.

Related posts:

1. China’s Tencent - Dominating Global Internet Giants Google and Amazon. From GWC‘s Report Chinnovations on The New Media: Due to a large number of users, in 5 years time Tencent has already become the 3rd largest internet company, after Google & Amazon in market cap. The ferocious increasing speed just leaves Google & Amazon far behind....

2. Chinese Internet Habits vs. the US. It’s important to understand the difference between Chinese internet habits and those of the West, especially for brands entering China. The chart below, by BCG, shows several key consumption differences between China and the US; differences that lead to completely new strategies to connect with Chinese audiences. Key elements here are the greater emphasis on [...]...

3. Chinese Netizens Create 50.7% of Total Internet Content. From China Daily: For the first time in history, Chinese Internet users have produced more content than professional websites. Hu Yanping, of the Data Center of China Internet (DCCI), said the era of Web 2.0 has officially overtaken Web 1.0 as the amount of content generated by personal users on blogs, online forums, social networking sites [...]...

4. QQ (Tencent) Dominates Chinese Mobile IM Market. From China Internet Watch: According to data released by Enfodesk, Q2 mobile IM market went up by 40 million active users; Tencent QQ leads with 60% market share; far beyond closet competitor Fetion’s (China Mobile) 22%. Related articles US China Internet Summit (downtheavenue.com) Tudou ‘That Love Comes’ Original Drama Series Debut (prnewswire.com) Chinese firms stake [...]...

5. Rich Chinese Prefer the Internet vs. Offline Channels. From Synovate China Media Atlas; channel preference of higher-income Chinese. Higher-income Chinese tend to prefer Internet channels vs. all other available channels. While outdoor and TV are strong, expect offline channels to lose ground to digital communication medium; primarily due to low-cost and easy access vs. other channels...."

 

[JayAtl]

Arrogant China leadership, orchestrated Google hacking-
Senior Chinese figures were behind the hacking of Google earlier this year which forced the search engine to quit the country, leaked US cables suggest.

One cable, released by whistle-blowing site Wikileaks, cites a "well-placed" contact as saying the action against Google was "100% political".

A politburo member is said to have been angered after Googling his name and finding critical comments online.

The cable says it is unclear whether China's top leaders were involved.

Other cables show Beijing has been "extremely concerned" about the use of high-resolution satellite imagery on Google's mapping software, Google Earth.

In January, Google said it had been subjected to a "sophisticated cyber attack originating from China" - it said the e-mail accounts of human rights activists were among those hacked.

In the ensuing row over internet censorship, Google abandoned mainland China and moved its Chinese-language operations to Hong Kong.

The company did not say who it thought was responsible but the cables, released by Wikileaks and published on the Guardian website, show the company had repeatedly raised concerns about the issue.
Read More:
BBC News - China leadership 'orchestrated Google hacking'

 

[H2O3C4Nitrogen]

I guess Baidu is competing to win over the local Chinese Market and doing so its quite successful.
Goggle on the other hand can exploit Chinese buisness as many of the Big Chinese Clients are out of China and predominantly use Google.

i opened the site of Baidu but coudnt understand a word....!

 

[Martian2]

Arrogant China leadership, orchestrated Google hacking-
Senior Chinese figures were behind the hacking of Google earlier this year which forced the search engine to quit the country, leaked US cables suggest.

One cable, released by whistle-blowing site Wikileaks, cites a "well-placed" contact as saying the action against Google was "100% political".

A politburo member is said to have been angered after Googling his name and finding critical comments online.

The cable says it is unclear whether China's top leaders were involved.

Other cables show Beijing has been "extremely concerned" about the use of high-resolution satellite imagery on Google's mapping software, Google Earth.

In January, Google said it had been subjected to a "sophisticated cyber attack originating from China" - it said the e-mail accounts of human rights activists were among those hacked.

In the ensuing row over internet censorship, Google abandoned mainland China and moved its Chinese-language operations to Hong Kong.

The company did not say who it thought was responsible but the cables, released by Wikileaks and published on the Guardian website, show the company had repeatedly raised concerns about the issue.
Read More:
BBC News - China leadership 'orchestrated Google hacking'

It is merely hearsay. There is no proof. At this point, it is only gossip.

 

[H2O3C4Nitrogen]

is it possible that the Giants in China can give Google hard time by capturing the markets in other countries ?
Highly unlikely though...!

 

[Chinese-Dragon]

I guess Baidu is competing to win over the local Chinese Market and doing so its quite successful.
Goggle on the other hand can exploit Chinese buisness as many of the Big Chinese Clients are out of China and predominantly use Google.

i opened the site of Baidu but coudnt understand a word....!

That's why Baidu is doing so well in the domestic market. It caters specifically for Chinese-language usage.

is it possible that the Giants in China can give Google hard time by capturing the markets in other countries ?
Highly unlikely though...!

Probably won't work well overseas, for the same reason as above. Doesn't matter though, it is best to focus on the domestic market. Especially in a country like China where the domestic market is so large.

 

[Martian2]

JayAtl, I would appreciate it if you would stop trolling and posting unsubstantiated gossip in my thread. Your anti-China post does not have the name of the source or even a shred of evidence.

On the other hand, I have real news on your country. Stop posting anti-China gossip in my threads or I'll start unloading on you with real hard news.

India ninth-most corrupt country: Survey - The Economic Times

"India ninth-most corrupt country: Survey
10 Dec, 2010, 01.46AM IST,ET Bureau

NEW DELHI: About 54% Indians paid a bribe in the past year, according to a global survey by Transparency International (TI), which pegs the extent of corruption in India at levels comparable with Cambodia, Nigeria, Afghanistan, Senegal, Uganda and Liberia.

TI’s Global Corruption Barometer survey, released on global anti-corruption day, measures public perception on corruption across the world. One metric asks respondents if they had paid a bribe during the past 12 months to providers of any one of the nine services such as education, judiciary, medical services, police, registry and permit services, utilities, tax revenue and customs.

By this metric, India is the ninth most corrupt country in the world, in a ranking of 86 countries, with 54% of people reporting having paid a bribe. War-torn Iraq (56%) and Afghanistan (61%) suffer worse levels than India, as do nations such as Liberia (89%), Uganda (86%), Nigeria (63%), Sierra Leone (71%), Senegal (56%) and Cambodia (84%).

The world average is 25%, while the Asia Pacific average is 11%. The European Union enjoys an average of 5%, as does North America (Canada is marginally less corrupt than the United States), while Latin America and North Africa reported an average of 36%. Sub Saharan Africa has an average of 56%, compared with India’s 54%.

The perception of pervasive corruption matches the story painted by the media, which reported high-profile scams, including the Commonwealth Games organising and the 2G-spectrum allocation. The survey confirms that petty corruption is also endemic in India.

Indians perceived political parties to be the most corrupt, ranking them 4.2 on a scale of one to five. Political parties are followed by Police (4.1), Parliament/legislature (4) and civil servants (3.5). Private sector, NGOs and judiciary are all seen to be similarly corrupt (3.1), with the media enjoying a marginally better rating at 3. Military (2.8) and religious bodies (2.9) enjoy better public confidence.

Seventy-four percent Indians believed that levels of corruption has increased during the last three years, compared with a world average of 56% and Asia-Pacific average of 47%. In India, 1,000 urban respondents were queried for the survey that had 91,000 participants world-wide.

“Most people interviewed this year perceive an increase in corruption levels in their countries in the past three years. This sends a clear message to leaders around the world that corruption continues to plague societies everywhere,” the report said."