China's Rapidly Expanding Search Engines, Market
Posted on | January 9, 2008 | No Comments
If you sell to a global market, or are contemplating such an expansion, here are some facts and figures about China’s search engines, market that might get you thinking about online advertising in a whole new light:
- China has 103 million Internet users making it the second largest online market after the US, which has 203 million web users.
- Growth in online audiences is slowing in the West, but is just beginning to pick up steam in the East.
- China has its own popular, homegrown search engines but Google, Yahoo and Microsoft are all making inroads into that market.
The writing is on the wall… search engines and the advertising opportunities that go with them are already playing a formative role in Chinese consumerism.
The Challenges for Search Engines in China
Depending on which survey you read, either Google or Yahoo is running in second place behind homegrown Baidu.com in the Chinese search engines sweepstakes. But the American search engines may find that attaining first place won’t come easily.
That’s because there are cultural and language impediments they’ve never had to face before. For example, as Chinese search engines leader Baidu.com points out on its website:
“Applying avant-garde technology to the world’s most ancient and complex language is as challenging as it is exciting…. we believe there are at least 38 ways of saying “I” in Chinese…. pinpointing queries in the Chinese language is an art rather than a science.”
Then there’s the little matter of the Chinese government blocking certain types of search results that offend its political sensibilities.
Another obstacle to search engine growth in China is a high level of mistrust of shopping online, understandable in a fledgling market. The Chinese prefer face-to-face business dealings, according to business expert George Haley. He says it will take them a while to get used to the web’s “anonymous exchange of goods online.” That’s why eBay in China hosts meeting rooms where buyers and sellers get together to wheel and deal in person.
So to succeed, the big search engines have to bring their PPC advertising services to a local level, with Chinese representatives bridging the language/culture gap. (Google has already appointed local distributors to sell AdWords ads in China.)
Google Used For Shopping
Although a recent study on the China Internet Network Information Center puts Google (32.9%) well behind Baidu (51.5%) in market share of searches conducted in Beijing, people seem to be using the two engines for totally different purposes. Most Chinese search engine users were going to Baidu to download music but were using Google for shopping, business, and reference information. And Google tends to attract more searchers in the higher income levels than Baidu. All this bodes well for Google’s ability to provide an active audience for its PPC advertising.
So who are these early adopters? Chinese Internet users tend to be young (under 24), male, richer and more educated. In other words, prime consumers… or at least they will be when online purchasing becomes more accepted in China. So far, research suggests that they’re mainly using the Internet to do several tasks:
- Two thirds of Chinese Internet users are there for the news (often entertainment related) or games.
- About half are there to download music and movies.
- Most who communicate via the web prefer instant messaging to email.
- The few who do actually make purchases online are reportedly buying entertainment, phone cards, computer hardware or software.
How long it will take to raise Chinese confidence in online commerce is uncertain but judging by the spirited jockeying for position currently taking place, the big search engines are banking on a rosy future in the Chinese market. It’s just a matter of time.
PPC Advertising on China’s Search Engines
Getting organic (natural) search results for your product or service in the Chinese language search engines might be an overwhelming task for most small/medium-size businesses. Running a PPC campaign in a foreign language may be only marginally easier, especially if you plan to do it yourself.
So several businesses have sprung up to do it for you. There are now English language services that, for a fee, will prepare and manage your Chinese language search engine ad campaign for you.
But before diving in, it’s wise to get familiar with the key players. Here are the main search engines in China that offer PPC advertising (links to English pages have been provided when available):
- Baidu.com – The established, homegrown leader that the other search engines are gunning for.
- Google China – Exporting Google magic to the East.
- Yahoo China – Recently re-launched, some reports say Yahoo China is actually second in popularity behind Baidu and ahead of Google.
- Sina – Highly recognized search engine boasting 42 million active users.
- 3721 – Pioneer of Chinese Keyword services, operating since 1999, now affiliated with Yahoo.
- Sohu – A well-established family of websites including a Chinese language search engines with over 1 billion indexed pages.
Summary
For North American or European businesses considering expanding into the Chinese market, search engines advertising still presents some challenges, the main one being reticence among consumers there to trust online sellers. But as familiarity grows, especially among the young and well-heeled, you can expect to see more and more opportunities to sell your products or services online to the largest consumer group in the world.
For more articles about search engines in China, visit these links:
- Google’s China Situation (blog article)
- Survey Studies Internet Use in China
- Internet Search Giants Hurry Into Chinese Market
- China Search Market Report from iResearch (free report)
Other China Search Engines to Consider:
- China Exporter Net – Export, manufacturer and trade directory.
- China’s Official Gateway – Authorized portal site established by the Chinese government.
- China Big Yellow Page – A free online yellow page directory service for China containing millions of company listings in China, Hong Kong and Taiwan.
- Gateway 2 China – China related online information resources and classified ads, accessible via keyword search and browsing.
- Hyper-C: The Ultimate China Search Tool – A Chinese search tool in both English and Chinese version.
- Muzi.com – A portal web site of China.
- Timway – Hong Kong search engine.
- China-Kontor Your Gateway to China – Directory of China related links organized in several categories.
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