Google Added 25% to Chinese Ad Revenue

By Jordan McCollum on July 3, 2009

Google Added 25% to Chinese Ad Revenue

After their recent skirmish with the Chinese government over Internet porn, Google China is back online. And they’re already optimistic: apparently they’re poised to announce a Q2 revenue increase in China of 25% over the previous quarter. (And in this economy, that’s not just great; that’s phenomenal!)

Brand Republic reports that Google China will also see operating revenue increases of 45% to 50% over the second quarter of last year. For owning only 30% of the Chinese search market, that seems pretty impressive. And the revenue boost from April, May and June of this year probably wasn’t because of a jump in market share—they’ve only added eight percentage points to their marketshare over the last two years.

Meanwhile, Baidu continues to dominate the Chinese search market with 64%, according to Brand Republic. And it’s not losing ground to Google, either—Baidu is up six percentage points from two years ago. So it would seem that smaller players in the market are losing market share to the two leaders. Brand Republic doesn’t mention on a similar revenue boost in Q2 for Baidu, but the Chinese search giant did have a strong first quarter this year.

Google CEO Eric Schmidt notes that the company continues to work with the Chinese government over its pornography concerns.

What do you think? Is Google betting better at monetizing in China, or are people just suddenly more willing to click on search ads? Do you think Baidu is seeing similar gains?

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5 comments on “Google Added 25% to Chinese Ad Revenue”

09 年第二季度，谷歌中国广告收入增长 25% | 谷奥——探寻谷歌的奥秘 Says:

July 3rd, 2009 at 5:48 pm

[...] MarketPilgrim 本站文章除注明转载外，均为本站原创编译 [...]
Google Added 25% to Chinese Ad Revenue | Tech Talk Says:

July 3rd, 2009 at 8:00 pm

[...] See original here: Google Added 25% to Chinese Ad Revenue [...]
jlbraaten Says:

July 4th, 2009 at 12:17 am

This is going to be a fascinating market to watch because there are so many variables. The market itself is ginormous and the players are huge as well. You know that Baidu is doing well in part because they tow the line with the government. Can Google then beat them at this game and still turn a buck? Very very great.

jlbraaten’s last blog post..New Website ROI Tips: Online Goal Setting
Arab Publishers Says:

July 5th, 2009 at 6:16 am

This is what should other countries do,
stop google for awhile which will make it lose money and return it back later and ask for more money !!
I don’t think google is best at monetizing china because its #1 populated country in the world and this is normal.

thank you for the post Jordan.

Arab Publishers’s last blog post..من عيوب محرك البحث الجديد بينغ Bing
Paid Content : Google Expected To Post Second-Quarter Gains In China Says:

July 6th, 2009 at 5:55 am

[...] compared to the first quarter according to BrandRepublic, which cites domestic reports (via Marketing Pilgrim). Operating revenue is also expected to be up between 45 and 50 percent from a year ago. Google [...]