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Strategy Analytics: Microsoft and Baidu Gain Share on Google

In contrast, the Chinese search market leader Baidu has capitalized on Google's retreat from China and the overall rapid growth of the Chinese search market. Baidu's revenue surged 76% over the second quarter last year and by 49% over Q1 2010. As a result its global search revenue market share grew by 1.4 percentage points in Q2 2010. In terms of revenue, Baidu is now the forth largest search company in the world, with its sight set on Yahoo and Microsoft.

"Google's search revenue growth continues to slow down as the Western search market reaches maturity and Google struggles to gain share in the fastest growing Asian markets," said Martin Olausson, Director of Digital Media Research at Strategy Analytics. "As a company, it will become increasingly more important for Google to find significant new revenue streams in order to offset the decelerating search growth."

"Google's dispute with the Chinese government, and subsequent withdrawal from the Chinese market, has given Baidu the advantage of unrivalled growth in the world's largest Internet market," added Jia Wu, Analyst at Strategy Analytics Digital Consumer Practice. "As a result, Baidu's global revenue market share has grown to 4.6% from 3.3% in a single quarter. This growth is expected to continue for the rest of the year."

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in various technology areas. For more information, please visit http://www.strategyanalytics.com/

Strategy Analytics, Inc.
US Contact:
Jia Wu, +1 617 614 0700
jwu@strategyanalytics.com
or
European Contact:
Martin Olausson, +44(0) 1908 423 611
molausson@strategyanalytics.com