Baidu Google Yahoo, Who Has the Bigger Pie?
Since Google established it's Shanghai office in the year 2005, more online users in China start to learn the GOOGLE language. Baidu has taken the lead of the search engine market in China since 2003. According to a recent study by iResearch, there were 56.6% online users use Baidu vs. 32.8% Google users. The third place is held by Yahoo China. According to the study, there are over 97 million online users (87.4%) use search engines on the daily basis in China. This number may exceed 100 million this year.
The online shopping market exceeded 4 billion RMB last year where 3/4 of the sales were based on online ads and the other 1/4 of the sales were generated from online searches. From the data of the North American online market growth, we can expect this ratio (online ads. vs search ads.) will change gradually in China this year.
One challenge Goolge China is facing is that both Baidu and Yahoo support MP3 searches which some what is violating the copy right law of digital music distributions. However, there are dramatic amount of users are choosing the two search engines based on this service. Google needs to either join the game and offer similar MP3 search services or future enforce it's competitors - Baidu and Yahoo China to terminate the commercial MP3 search features.
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