Analysys International Says Google Ranked Third in China Search Engine Market in Q1 2006

June 21, 2006; 07:28 AM
BEIJING - Analysys International, a leading Internet based provider of business information about technology, media and telecom (TMT) industries in China, says in its recently released report ''China Search Engine Market Quarterly Tracker Q1 2006'', that

China's search engine market reached RMB 303 million in the first quarter of 2006. China's biggest search engine Baidu occupied a leading market share of 43.9%, seconded by Yahoo! China, with market share of 21.1%. Troubled by localization, the world's biggest search engine Google only ranked the third in Chinese marketplace with market share of 13.2% in Q1 2006.

According to the report, in the first quarter of 2006, revenues from Pay per Click Search Engine Bidding reached RMB 175 million; revenues from fixed position search engine advertising reached RMB 9 million; and revenues from real-name keyword registration and advertising services reached RMB 120 million.

Figure 1 China Search Engine Market Breakdown Q1 2006 (http://english.analysys.com.cn/admin/images/1448_1.jpg)

Analysys International says the combination of search engine with e-commerce is drawing people's attention. To advertisers who deal in international trade, Google has advantages on multi-language advertising, such as Korean and Japanese ad-words advertising. However, in major areas such as Guangdong, Jiangsu, Beijing, Shanghai and Zhejiang, Baidu is more favored by online marketing advertisers. The market size of real-name keyword registration and advertising services has undergone negative growth.

Analysys International says localization and building marketing channels has become the most urgent work to do for Google in China. Localization does not simply mean language localization. User experience, marketing channels and even payment habits will affect the progress of a foreign firm to adapt to Chinese market.

This subject is further discussed in Analysys International's research report ''China Search Engine Market Quarterly Tracker Q1 2006''. For more information, please check the website: http://english.analysys.com.cn .

About Analysys International
Analysys International is the leading Internet based provider of business information about technology, media and telecom (TMT) industries in China with the mission to help their clients make better business decisions. They provide data, information and advice to 50,000 clients worldwide, representing 1,500 distinct organizations; they also deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Their clients include executives from companies like technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. For more information, please visit the website at http://english.analysys.com.cn.