Google Affirms Commitment To China As It Ends Relationship With Local Ad Resellers

At a technology conference in Bejing Google representatives restated that the company has a long-term commitment to the Chinese market and would continue to operate there. According to an AFPs report, Google vice president John Liu said China was a “very important market for Google.”

Google has displayed tremendous ambivalence about China over the past year, taking a principled stand on government-sponsored hacking into GMail and later backtracking to some degree in an effort to maintain a presence in the market.

China has the world’s largest internet and mobile markets, with almost 340 million internet users, more than the entire US population, and almost 750 million mobile subscribers. After taking a strong anti-censorship stand Google is trying to find a way to remain in China but not appear to have fundamentally compromised it’s new anti-censorship position.

In a related item Google has reportedly terminated contracts with seven Chinese ad resellers. According to Reuters:

Google . . .  said in late September it would terminate the contracts with the seven ad resellers in China, without giving a reason . . .

Credit Suisse estimated in a note on Monday that the seven AdWords distributors contributed 1.5 billion yuan ($226 million) in gross revenue last year or about 40 percent of Google China’s revenue.

Google’s termination of the contracts with the resellers has caused uncertainty in the market and led to slower customer acquisitions by the search giant in China, analysts said.

Related Google-China coverage:

Related Topics: 1 | Channel: Mobile | Google: Mobile | Google: Outside US

Sponsored


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



SearchCap:

Get all the top search stories emailed daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!

 


 

Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide