Microsoft Sees "Bing" Opportunities in China After Google's Exit

By launching Adcenter advertising platform on Tuesday, Microsoft (Nasdaq: MSFT  ) could improve the prospects of its Bing search engine after Google (Nasdaq: GOOG  ) pulled out of China's mainland in March this year, said a China Daily report.

The launch is aimed at grabbing the online advertising market share in China where companies have become cautious over going with Google, as the Internet giant started redirecting all its mainland traffic to Hong Kong site.

"It's the time to join the market and let Chinese advertisers have more choices," said the report quoting Anderson Liu, general manager, MSN China.

With 32.8 percent market share by the end of 2009, Google saw a continued decline in market share to 27.3 percent in the second quarter.

Feeling the impact from its woes in China, Google snapped commercial ties with two of its 25 advertising agents in the country in July.

To cash in on the Google's woes, Microsoft mainly aims to grab the overseas advertising from Chinese exporters by the launch of new Adcenter services, the report said. It expects revenues from these new services to contribute to half of MSN China's business.

Advertising activity from Chinese exporters forms a major part of China's online search engine market and occupied 40 percent share in Google's revenues, said the report quoting Analysys International.

Currently, Microsoft is partnering with Baidu to sell search engine advertising, and the company clarifies that the new services will not hurt their tie-up. In the second quarter, Baidu held a search engine market share of more than 70 percent in China.

"Actually I think it's a very good opportunity for MSN China," said the report quoting Edward Yu, president of Analysys International.

International Business Times, The Global Business News Leader

Google and Microsoft are Motley Fool Inside Value recommendations. Google is a Motley Fool Rule Breakers pick. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1287490, ~/Articles/ArticleHandler.aspx, 11/22/2014 5:53:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement