According to reports, 27 ad sales companies that work with the search engine have issued Google with a letter stating the indecision on its future has damaged their business and jeopardised future investments. They further insisted that the money already invested for ads be returned to them if Google.cn shuts down.
According to a wire report, the letter stated: "We see a constant stream of information but cannot predict the future, we see business sliding, but there is nothing we can do … We are waiting now in incomparable pain and disquiet."
A spokeswoman for Google had no comment on the news.
The letter comes two months after Google first said it is considering leaving the market. The news followed the revelation that it has been the target of numerous cyber attacks, which Google implied was an act linked to the Chinese Government.
According to a source close to Google, although the departure of Google.cn would be symbolic, Google Inc. would sustain minimal fiscal losses. It would also aim to maintain a presence in China through its mobile partnerships and hopes to garner advertising on its main Google.com page, the source added.
Eric Ng, chief innovation officer and head of global clients at Agenda group, added that if Google.cn does depart China, the advertising implications would not be crippling. He noted that if Agenda clients engage in search marketing, the agency allocates an estimated two-thirds of that budget to advertising on rival Baidu, and one-third to Google. Many clients, he adds, only wishes to advertise on Baidu.
