Google China Losing Staff, Traffic and Revenues
China Business News, 4/16/10
Chinese search company Baidu (Nasdaq: BIDU) has confirmed that Wang Jin, former VP of Google's China Research Institute, has joined Baidu as VP of technology.
Zhao Chenglong, chief analyst at Chinese recruiting firm Finder Hunter, said Google China's workforce remains relatively stable, with the sales and marketing teams unchanged. Zhao said, however, that some US-based and major domestic firms are nevertheless attempting to poach Google's R&D staff. Zhao reported that Facebook has been actively courting Google China personnel, and that five or six R&D employees have left or are in the process of resigning since Google announced its plans to withdraw from the China market.
Su Daode, director of VPSite.org, said that Google currently accounts for approximately 15% of all traffic to China's small to mid-sized websites, a figure that was still at 35% during January and February of this year. But now Baidu's share has risen to 75%, up significantly from its previous 50% share of all traffic.
On the websites of Google China's 27 online advertising agents, five have already given prominent placement to sell advertising on Tencent's (0700.HK) Soso search engine alongside Google, while one agent's website displays Google, Baidu and Sohu's (Nasdaq: SOHU) Sogou search ad products side-by-side. One agent reported that new revenue from Google clients has dropped 20% YoY and has continued at that rate for two months.
Keywords: Internet revenue online advertising Baidu Sogou Soso Google Tencent Facebook Sohu 0700.HK BIDU Wang Jin SNS HR online search Zhao Chenglong Finder Hunter Su Daode VPSite.org
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