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Baidu Market Share Slid, but Google Market Share Rose

Monday, January 25, 2010

BEIJING -- Baidu Inc. (Nasdaq: BIDU) and Google China still led the Chinese search engine market in the fourth quarter of 2009.

The market share of Baidu Inc. (Nasdaq: BIDU), the largest Chinese-language Internet search service provider, slid to 58.4% while the market share of Google China climbed to 35.6%, according to a quarterly report by technology, media and telecom (TMT) market researcher Analysys International.

Baidu switched its advertising system in the fourth quarter, which made negative influence on its revenues. In contrast, Google China and Sogou sustained a stable growth trend.

Notably, Taobao.com, a leading online retail marketplace under the aegis of Alibaba Group, came up with an independent search engine, search.taobao.com, in October-December 2009. Taobao.com may turn out to be the most powerful competitor of online search service providers such as Baidu and Google, guessed industry watchers.

In addition, Google's potential departure from China will not be beneficial to the overall development of the market. If Google stops operations in China, Baidu will be the only titan in the market, explained analysts.



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