Google Enters Chinese Language Paid Search Field

by Paul Denlinger

Posted Feb. 11, 2004

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Google has entered the Chinese-language paid search field by launching its keyword bidding service, Adwords, in Chinese. The service is available in two versions, simplified Chinese, which is widely used in China, and traditional Chinese, which is used in Hong Kong, Taiwan, and other countries.

Adwords has proven to be Google's main revenue generator in the US. In this business, advertisers buy keywords, paying for them on a click-through basis. The keywords show up on the search results page in a vertical column on the right hand side. The higher the price a bidder pays, the higher the position it will show up in on the column. Advertisers design their own ads, and the whole process is automated. Google only provides a small amount of human intervention to insure that the ads are in conformity with their internal editorial guidelines.

Payment to Google is made by registering a credit card during the setup process. Charges are made to the credit card while the account is active. Credit cards have only become more popular in the past few years in China.

Google's main competitor in the US is Yahoo!, which has purchased the other main paid search company, Overture. Yahoo! has been consolidating its position, and although it currently partners with Google for search, has unveiled its own search service which will replace Google's service soon.

In China, Yahoo! has taken a different tack from Google, choosing to acquire Chinese companies instead of setting up its own paid search service. Yahoo! has acquired 3721 in order to strengthen its presence in China. Recently, it has also chosen to partner with Sina.com , one of China's three leading Internet portals, to challenge eBay's wholly-owned online auction subsidiary Eachnet .

In China, Google provides search for Sina.com.

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