Feeds

Google slaps down China resellers in 'very important market'

When piece of action comes at a price

High performance access to file storage

Google has reportedly cut ties with seven ad resellers in China and, at the same time, renewed its vows to search users in that region – despite their undying love for the firm's rival Baidu.

Mountain View came under fire from Beijing officials earlier this year, after it provided China-based surfers with a search redirect via its Hong Kong servers.

The company’s defiance quickly came unstuck, however, and it was forced to do an embarrassing U-turn or else face being frozen out of the all-important China market.

But Google appears to be hedging its bets, with Reuters reporting this morning that it has turned its back on seven big name resellers in the country.

The firms had punted AdWords worth around 1.5bn yaun ($226m), or 40 per cent of Google’s gross sales in China last year, according to a Credit Suisse note.

Despite that, the web kingpin has ditched the resellers and is on the look out for other companies in China to step forward and flog its AdWords service.

However, a Google spokeswoman didn’t explain to Reuters why the Eric Schmidt-run company had dropped the resellers.

"[A] letter was sent out to them on 27 September... We gave them a month's notice," said Google.cn’s Cindy Qin.

All of which could open the door for China’s biggest search engine Baidu to snap up even more market share*. It currently holds about 70 per cent of the business in that region.

Meanwhile, Google veep John Liu told a tech conference in Beijing that China remained a “very important market” for the company, reports AFP.

He said the world’s largest ad broker would “continue to provide the best products and services for users in China as in other markets”.

Specifically, Google is hoping to tap into digital marketing to get more of the 30-40 million SMBs in China to sell their products online.

"Google, together with our team and partners, will spare no effort in helping China users and companies in digital marketing," said Liu.

But to really achieve that, Schmidt and co might want to turn their attention to that vanishing market share first. ®

*Microsoft's Bing heart barely beats in China. The company is trying to up its search prowess in the country having recently launched a beta with e-commerce giant Alibaba in that region.

"China is now the No. 2 market in the world, and will be the No. 1 market within the next year or two, for smartphones, PCs, etc. And I think it’s really important," noted MS boss Steve Ballmer on his visit to London recently.

In other words, all the tech titans want a bigger slice of the pie.

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.