China – Google and Yahoo’s New Battleground
China is the largest emerging market on the planet and it is coming of age more rapidly than anyone could have predicted. While the Chinese paid-ad sector was worth only $148 million in 2004 according to Shanghai based iResearch Inc., international business advertising targeting the Chinese market is expected to grow exponentially while the online economy of China matures over the coming years.
Google, Yahoo and Microsoft are all heavily invested in the growing Chinese tech world. Google and Yahoo both made major moves this month in relation to their interests in China, the most public being Google’s hiring of former Microsoft executive, Dr. Kei Fu Lee. Google and Microsoft are now engaged in a bitter legal dispute over Google’s hiring policies. The decision in this case could have far reaching implications on how major tech firms recruit employees as well as on Dr. Lee’s role in heading Google’s efforts in China.
Google also announced it was retaining the services of three large Chinese firms to represent its AdWords advertising for the Google China site. On Tuesday Google named China Enterprise, China Source and Hotsales as authorized Google AdWords resellers and they will provide training and support to the three firms. Google was moved to hire and train experts in their bid to remain competitive with newly public rivals Baidu.com, and Yahoo’s newest partner, Alibaba.
Late last week, Yahoo acquired 40% of Chinese ecommerce and business vertical search tool Alibaba.com in a $1 billion stock purchase. This makes Yahoo the largest investor in Alibaba.com, a position it is expected to use to push the Yahoo brand in the world’s largest emerging market. The deal gives Alibaba control Yahoo’s China business network while giving Yahoo effective control over Alibaba’s overall activities.
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Jim Hedger is a senior editor for ISEDB.com. Also he is a writer, speaker and search engine marketing expert working for StepForth Search Engine Placement in Victoria BC. He has worked as an SEO for over 5 years and welcomes the opportunity to share his experience through interviews, articles and speaking engagements. Hedger can be reached at jimhedger@stepforth.com
