China, Google license and gaining market share

Earlier we told you that Google has had its license renewed, which means that the search engine giant will continue to offer its search results in China. There are still obstacles in the way, so Google cannot rest easy – one is knowing that this decision is subject to revision, and the other is how they will have to fight Baidu Inc to gain its market share.

The reason why they have to fight its competition is because a number of advertisers had pulled their ads from Google due to uncertainty if their license would be renewed or not. Mark Lee and Brian Womack from Bloomberg wrote on BusinessWeek and said that there was already a huge gap between the two companies – that gap has now grown.

It will certainly be no picnic for Google, but they must be up for the challenge. They will have to be after their market share fell to 30.9 percent in Q1, that’s down from 35.6 percent on the previous three months.

Things were more positive for Baidu’s, there market share for the same periods were 64 percent ands 58.4 percent respectively. Do you think Google will be able to gain its market share once again?