Google’s China business is starting to feel the impact of its dramatic departure from the market, new figures show.
Google’s share of search market revenue slid by more than a quarter in Q2 while it fell to third place in the emerging mobile search market, according to research firm Analysys International.
Market leader Baidu entrenched its dominance of Chinese language search in the quarter, taking 70.0% of the market for the first time, while Google’s share slipped from 31% to 24%, Analysys said.
The Nasdaq-listed firm also holds sway in mobile search, with a 34.3% share, followed by Easou with 16.9% and Google on 12.3%, down nearly five percentage points.
Analysys said Google had been “leaking” customers and page views in the quarter because of the “uncertainty” over its situation.
Meanwhile, Google has cut ties with two of its 25 Chinese advertising sales agents, Suzhou-based Universal Internet Media and Weihua Network in Xi'an.
“The partnerships ended a couple of weeks ago because both sides felt there were no longer any mutual benefits,” Google China spokesperson Marsha Wang told China Daily.