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Bing Likely To Lose China Battle To Google And Baidu

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By Douglas A. McIntyre Updated Published
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Microsoft (NASDAQ:MSFT) wants to make it clear that it expects its Bing search engine to enjoy the same success in China that the software company believes it will have in the US market.

Redmond told Reuters that “Microsoft is committed to the China market and the search market in China is the most important strategic market for Microsoft.” The goal is ambitious and unrealistic.

China search engine Baidu (NASDAQ:BIDU) is the market share leader in the world’s most populous nation and has been since it was founded. Figures vary, but Baidu probably has 60% of the search share in its home market. Google (NASDAQ:MSFT) may have as much as a 30% market share and Yahoo! (NASDAQ:YHOO) has attempted to be a force in China for over half a decade. It relationship with Chinese e-commerce site Alibaba, where the portal company has a major investment, gives it come advantages to attract the Chinese online population.

Bing, however, has very little to offer the Chinese market. It does not have the brand that Google does or the loyalty that a local product like Baidu can command.

China may be Bing’s Waterloo. The country now has more internet users than the US, with about 350 million. That number is rising rapidly while online use in America is static. The Chinese market is as essential to search companies as it is auto firms, fast food chains, and big retailers.

Bing only has one strong competitor in the US–Google. In China, it is up against two and that is at least one too many.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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