Baidu
Microsoft's Chinese websites will now show Baidu's paid links mixed in

Microsoft signs China search deal with Baidu

Software giant concedes defeat for its own paid search efforts in China

Written by Simon Burns in Taipei

Microsoft's websites in China will include sponsored search results from Baidu, the country's largest internet search firm, in an alliance announced over the weekend. 

The deal illustrates the strength of Baidu's ad sales team in China's paid search advertising market, compared to Microsoft's weakness.

Users of Microsoft's Chinese websites, which include MSN China, Windows Live and other partners such as China Telecom, will now see Baidu's paid links mixed in with Microsoft's standard search results. 

Baidu's popular search engine is funded mainly by paid search results which appear above non-paid listings. Advertisers pay Baidu a few cents each time a user clicks on one of the paid listings.

Income from clicks on the links featured on Microsoft's sites will be shared between Microsoft and Baidu. The financial terms of the deal were not revealed.

Baidu's share of China's internet search market is generally estimated at over 50 per cent, and as high as 70 per cent.

The only other significant competitors in this market are Google and Yahoo, while Microsoft's share appears to be too small to be measured. 

The company does have a measurable minority share in some Chinese online markets, such as instant messaging and blogs.

"We expect this partnership to expand greatly our revenue from the paid search listings," said Baidu spokesman Xu Jiye, according to the Shanghai Daily

A Microsoft China executive added: "China is one of our most important markets. The strategic alliance with Baidu will help us provide new opportunities for advertisers, which will further enhance our search business in China."

Baidu has faced accusations of click fraud related to its sponsored search results placements during the past year.

A small number of advertisers have complained that they are paying for nonexistent clicks, or paying for clicks from people who have no intention of buying their products and services.

However, Baidu executives have pointed out that none of these accusations has resulted in any formal legal action, much less been proven in court.

See also:

reader comments

related articles

 

Baidu fends off Google in China

Sales and profits double at China's search leader 25 Apr 2008

Google China to launch MP3 search

Playing catch-up with local firm Baidu 01 Aug 2008

Record labels attack China's music biz

Yahoo and Baidu linked to 'blatant violation of copyright', IFPI alleges 06 Feb 2008

latest news

Ballmer highlights aims for New Year

Ballmer announces Windows 7 beta and future alliances designed to improve information sharing 08 Jan 2009

Active Storage completes UK Jigsaw

Jigsaw unveiled as Raid vendor's first non-US Platinum partner as it launches in Europe 08 Jan 2009

Dell quits Irish production

Vendor to slash 1,900 jobs in Limerick as it migrates assembly for EMEA customers to Poland 08 Jan 2009

poll

Challenging times ahead?

Challenging times ahead?

Do you think there will be a lot of channel job cuts in 2009?

Previous poll results

Paul Anderson, Trend Micro

Vendor Q&A: Paul Anderson, Trend Micro

During this Q&A session Paul Anderson, UK country manager of Trend Micro talks about the changing threat landscape and how Trend is working with resellers in 2009

Sara Yirrell and Rick Wallis

Vendor Q&A: Rick Wallis, NEC Computers

In this exclusive vendor Q&A, Rick Wallis, UK sales director at NEC Computers talks to CRN editor Sara Yirrell about his firm’s plans for the channel.

events

Channel Expo 2009 logo

Channel Expo 2009

The UK's top reseller exhibition will return to the NEC on 20 May 2009

CRN Fight Night 2009

The channel's only white-collar boxing event is back

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

White papers

Search white papers

Top categories

Primary Navigation