Google's China exit to lead to loss for advertisers

Google has indicated it may cease to operate in China following a cyber attack aimed at gathering information on human rights activists. (See:Google threatens to exit China after cyber attacks) 

According to Warren Cowan, CEO, Greenlight search, a leading UK-based independent search marketing agency, if Google quits China, then it leaves Microsoft's Bing, Yahoo and Baidu as the primary sources for accessing the Chinese search audience.

For advertisers, this will mean a greater dependency on foreign operators and advertising dollars going overseas.

Cowan says, without Google, assuming Yahoo and Bing remain, that 30 per cent share will be redistributed, most likely to Baidu, which will further cement its leadership position.

The remaining share may not be split equally among Bing and Yahoo users, which would further upset the balance of power for one or the other. That means growing in the Chinese market is likely to to be very difficult for at least one of them, he says.

"For advertisers looking to target the Chinese market, it means a greater dependency on a foreign operators who are less familiar to them, and less integrated with their ad operations," says Cowan.

He adds, "For the US and global advertising industry it means ad dollars are going to go overseas into Chinese pockets as opposed to strengthening US coffers."