Google's loss is really Baidu's gain

08:51, April 30, 2010      

Email | Print | Subscribe | Comments | Forum 

Chinese search engine Baidu Inc on Thursday said it benefited from Google's partial exit from the country and anticipates more customer gains in the next few quarters.

Analysts, however, said that Google's bleeding might slow in the second quarter, as mainland users' continued access to the Google Hong Kong site may ease advertisers' concerns.

Robin Lee, chief executive of Baidu, said the company benefited from Google's decision to move its search engine to Hong Kong last month. "We have seen more confidence and higher customer loyalty since the end of last quarter," Lee said during a conference call on Thursday.

Baidu also benefited from the overall market growth and the deployment of its new online advertising platform "Phoenix Nest".

The company said on Wednesday that its profit more than doubled in the first three months of this year. Net income for the period rose to 480.5 million yuan ($70.4 million) from 181.1 million yuan a year back.

Incidentally this is the first earnings report from Baidu after its closest rival Google said in March that it was moving its search engine on the mainland to Hong Kong.

The US search company's decision led to most of its advertisers reducing spending by about 30 percent.

"The fall of Google's market share in the first quarter reflects the advertiser's concerns on the future of Google's Hong Kong site and its soured relationship with the Chinese government," said Edward Yu, president of Analysys International.

"Since the site is still accessible to users in the mainland, we expect Google's market share to recover in the second quarter," he said.

According to Analysys International, Google's market share in China fell to 30.9 percent in the first quarter from 35.6 percent three months earlier. Baidu's market share rose to 64 percent from 58.4 percent, the Beijing-based research firm said.

The search engine market share is based on revenue, rather than user numbers.

Access to Google's new site in Hong Kong has been normal for most mainland users. Google's other services, such as maps, video and music search are also functioning normally.

Source: China Daily

(Editor:黄硕)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based eastday.com reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion