Google Reaffirms Search Commitment to China Despite Search Share Drops Plus Ends Relationship with Ad Resellers

At a technology conference in Bejing, Google stated that the company has a long-term commitment to the Chinese market and would continue to operate there. Google's John Liu said China was a "very important market for Google" and the company will "continue to provide the best products and services for users in China as in […]

At a technology conference in Bejing, Google stated that the company has a long-term commitment to the Chinese market and would continue to operate there. Google's John Liu said China was a "very important market for Google" and the company will "continue to provide the best products and services for users in China as in other markets."

While, Google's search market share in China dropped from 27.3% in the Q2 to 24.6% in Q3. At the same time, Baidu's market share climbed to 72.9% in Q3, according to iResearch.

In a related news, Google confiremd that they've terminated contracts with seven Chinese ad resellers. According to Reuters:

Google said in late Sep 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% 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.

Google, which continues to lose search market share to rival Baidu in China, yesterday confirmed that they terminated the contracts of seven large AdWords resellers.