Google can expect to see a rise in paid search advertising revenues from China, despite its public falling out with the government, according to US research firm Covario.
The company said in spite of the fracas which has led to the search giant re-routing Google.cn searches through Hong Kong, the firm will see its PPC takings from high-tech and consumer electronics companies rise by 43 per cent from quarter one.
However, PPC spend with Baidu, Google’s rival in China, is expected to rise by 210 per cent during the second financial quarter of 2010, compared with Q1.
In a post, Covario said: “Overall strong growth aside, it appears that the prognostications of massive defections from Google are unfounded — the spending on the network in China remains robust.
“However, this strategy by Google clearly is a boon to Baidu — whose spend is up markedly.”
Worldwide, Covario estimates Q2 spending on paid search in the high-tech and consumer electronics sector will be up 24.9 per cent on Q1.
According to the firm, Google will lead the way, benefitting from a 24.9 per cent increase in spending while Yahoo will experience an 11.3 per cent boost. Covario believes Bing will lose out with spending down 13.3 per cent on Q1.
By Richard Morris