Google cuts off ties with two Chinese advertisers

July 27th, 2010 - 4:34 pm ICT by ANI  

Shaan New Delhi, July 27 (ANI): US-based search engine Google Incorporated has cut commercial ties with two of its Chinese advertising agents, highlighting concerns about its continued standoff with Beijing over content censorship.

Google ended partnerships with Universal Internet Media and Xi’an Weihua Network, which are its major advertising agents in East and Northwest China, Marsha Wang, spokesperson for Google China, told the China Daily.

Universal Internet Media is based in Suzhou, Jiangsu province and Xi’an Weihua Network is based in Xi’an, capital of Shaanxi province. The two are among 25 of Google’s authorized adverting agents in the country.

The move is likely to scare away more domestic advertisers.

“The partnerships ended a couple of weeks ago, because both sides felt there were no longer any mutual benefits,” Wang said.

She declined to comment on how the breakup would affect Google’s Chinese business.

Google’s market share in China has dropped to 24 percent in the second quarter of this year, from 31 percent in the first quarter.

In contrast, the market share of Baidu, Google’s rival in the Chinese market, hit a record high of above 70 percent during the past three months.

It is unclear whether Google’s departure from Universal Internet Media and Xi’an Weihua Network will impact its partnership with other advertising agents. (ANI)

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