Adrian Peter Tse
Apr 1, 2015

Baidu reaps the benefits of Google’s China ban

CHINA - A massive and growing internet population in China has increased Baidu’s share of search ad spend globally, although it still trails well behind Google.

Baidu reaps the benefits of Google’s China ban

According to an eMarketer report, Baidu’s global share of search ad spend will reach 8.8 per cent this year, up from 7.6 per cent in 2014. Google will rake in 55 per cent of search ad dollars in 2015.

Baidu’s market share reflects the growth and influence of China's digital ad market on a global level. Search advertising spending in China will total $14.90 billion this year, up 32.8 per cent from 2014, which accounts for 18.2 per cent of all search spending worldwide.

By comparison, the US search ad market will reach $25.66 billion this year.

 

 

Strong ecommerce growth beyond major cities like Beijing or Shanghai and in third- and fourth-tier cities has been a key driver for Baidu’s success in China. Other leading players, such as Sohu, have also played a role.

Across the country, consumers are increasingly buying retail products online, and there's a strong use case for search and discovery among these new online buyers.

eMarketer reports that 43.6 per cent of total ad spend in China is digital, trailing just behind the UK, which reached 50 per cent.

 

 

In addition, eMarketer projects that digital ad spending worldwide will reach $170.85 billion in 2015.

Search ads will account for $81.59 billion worldwide, an increase of 16.2 per cent over 2014. By 2019, search ad spending will reach $130.58 billion globally, still growing at nearly 10 per cent year over year.

 

 

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