In Chinas biggest search engine by revenue, Baidu, has entered into a partnership with Microsoft to allow users in China to see English-language search results generated by Bing. According to sources, no financial considerations have been involved in the partnership agreement that will go into effect from later this year and will allow Bings search results to be labelled and integrated into Baidu's search results.
Even though the advertising revenue generated from the improved search results are going to go to Baidu, as it controls the site through which users will interface, Microsoft still gains, by way of having the chance to promote Bing in China, the worlds biggest Internet market. Currently Microsoft has less than one percent of search market in China, and the company will be hoping that the partnership with Baidu will improve its fortunes.
According to analysts, Baidu currently controls about 83% of search market in China, but the company has been for years trying to improve its capabilities in the English search space. A deal with a powerful partner like Microsofts Bing will help Baidu give better results to its audience. As Beijing continues to maintain strict controls over Internet, the search results will undoubtedly censored. References to human rights and dissidents might now show up easily.
Google continues to be available on the mainland, but its headquarters have moved to Hong Kong, where Beijings censorship rules dont apply. Lately it has become more difficult to access Google and its email service, Gmail, at the mainland. The search giant has often blamed the Chinese government for interfering in its operations. For Microsoft this is a big opportunity to promote itself search engine in a country where the Internet population tops 470 million.
Last year Chinese advertisers had spent $1.7 billion on online ads; this, according to Google, is one of the biggest such ad spend in the entire world.
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