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Wednesday, December 30, 2009

Microsoft Wants Bing to Become Big Chinese Player

microsoft-watch.com

Microsoft seems determined to seize the large-and-growing Chinese search-engine market, according to a statement circulating online.

"Microsoft is committed to the China market and the search market in China is the most important strategic market for Microsoft," the company told Reuters on Dec. 29. "We specifically set the search technology center in China to get a deeper understanding of what Chinese users need, to be able to deliver the best product to them."

But as T.S. Eliot might have said, there's a substantial shadow between the concept and the reality. And in the reality, Microsoft has a long, steep road ahead if it wants to catch up to the reigning players in the China space.

According to research firm Analysys International, as cited by Reuters, Chinese search engine Baidu currently leads the country's search-engine market with 63.9 percent, followed by Google with 31.3 percent. Meanwhile, another research firm estimated Bing (which launched in China in June, and is still technically in beta) as occupying less than 1 percent of the Chinese search-engine market in the second quarter of 2009.

Within the U.S., Bing currently owns less than 10 percent of the market (depending on which research firm's data you use; Experian Hitwise plugged it at 9.57 percent for October, while ComScore said 9.9 percent), while Google dominates at around 65 percent and Yahoo somewhere in the 18 percent range. The big hope among Redmond's executives, most likely, is that the finalization of the Microsoft-Yahoo search-and-advertising deal will not only result in Bing seizing Yahoo's search engine market-share with little to no attrition (under the terms of the deal, Bing will power search on Yahoo's sites) but that the extra flood of data from Yahoo customers will allow Microsoft's engineers to refine Bing into a more robust Google competitor.

(read more from orig post)
http://www.microsoft-watch.com/content/advertising_search/microsoft_wants_bing_to_become_big_chinese_player.html



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