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Google's Share Of China's Search Market Has Fallen From 30% To 18%

Baidu (NASDAQ: BIDU) now holds 77.7% market share by revenue and Google (NASDAQ: GOOG) 18.3% in China’s search engine market, according to 2011 Q3 data from iResearch.

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About one-and-a-half years ago, Google engaged in a public dispute with the Chinese government, refusing to continue censoring its search results and re-directing Chinese traffic to its Hong Kong site. In that time period, Baidu has gained 10% market share while Google has lost 11%.

While Google and Baidu both generate virtually all of their revenue on search advertising, their paths have also diverged, with Google as more of a technology company and Baidu pushing more into media.

The latest iResearch data makes earlier media reports that Sogou, a search engine by Sohu (NASDAQ: SOHU) had surpassed Google by usage in China, appear unlikely. By revenue, Sogou still ranks a distant third at 2.1%.

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Total Q3 search revenue reached 5.5 billion RMB (866 million USD), an increase of 78% from the same period last year. Search engine revenue has been boosted by a boom in e-commerce ad spend over the past year.

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iResearch data is sourced from company financial reports and estimates from its own tracking systems.

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By Kai Lukoff, iChinaStock.com

 


 

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On February 28, Axel Springer, Business Insider's parent company, joined 31 other media groups and filed a $2.3 billion suit against Google in Dutch court, alleging losses suffered due to the company's advertising practices.

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