Posted July 24, 2009 11:36 am by with 4 comments

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Baidu LogoBaidu is the search engine of choice for China, at least for now. PaidContent reports that the Chinese company is experiencing ‘Google-esque” success in the largest growth market online in the world. Meanwhile Google itself is in a rather unfamiliar position

According to Bernstein & Co., Baidu’s share of the Chinese search market increased to 64.5 percent from 62.3 percent during the quarter, while Google may have lost share.

Google and the Chinese government have had their issues in the past but that can’t hide the fact that the Chinese people have spoken and they choose Baidu. The company is reaping the rewards of this popularity by posting some percentage increases that Google used to experience on a regular basis.

Baidu (NSDQ: BIDU) posted big gains in revenue and net income during the quarter, as it continued to dominate the growing search engine market in China. The company’s revenue jumped 37 percent ($160.7 million) and net income was up 45 percent ($56.1 million). Net income and revenue both came in ahead of analysts’ expectations.

Google apparently experienced some nice growth in China as well from a monetary standpoint but there were no details given by the worldwide leading search engine. One has to suspect that losing the battle in the largest growth market is not something that sits well with Google’s leadership but there may also be a growing resignation to the fact that China is just different and poses unique problems; even for Google. Even after saying that, though, the market in China is so big that Google will take what it can and concentrate on ruling the rest of the online universe.

Tucked in the report is one interesting point that Baidu anticipates continued growth despite the two week long strike that their salesforce went on during the quarter. A salesforce on strike? I have spent most of my career in some sales related capacity and that concept is so foreign to me that I just scratch my head. Maybe Google sees happenings like that and realizes that while the money could be good the headache could be greater. For the record, if I ever ‘went on strike’ in a sales job here in the US, I would make sure I cleared out my desk and updated the resume before I picked up a picket sign. Sales and strike have the same relationship as oil and water.

But I digress.The fact is that Google is actually getting beaten soundly in a rather large area of the world. They are not used to that for sure but maybe even Google can’t have everything. It’s not like they’re losing money there.

  • What happens when Baidu starts making moves into Europe?

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  • China is a very big market and I am not surprised that Baidu posted gains. The SEM industry in China is really picking up, with many agencies and professionals educating search marketing over there. Who needs Google in China? 😉


  • Chinese Market is an huge waste of time. I would recomend Google to focus in other places. By what i´ve heard, Yahoo dominates Japonese Searches.

    Japan is a great place to focus their work i think