Feeds

Google slaps down China resellers in 'very important market'

When piece of action comes at a price

Designing a Defense for Mobile Applications

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.

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.