Google Inc (NASDAQ:GOOG) has finally carved a niche for itself in the difficult Chinese market, emerging as a leader in ads aimed at mobile phone applications.
The Internet search giant has not been able to make a dent in China’s search engine market with local favourite Baidu still leading, but with ads for mobile applications it has scored.
App developers and corporations such as Bayerische Motoren Werke AG and Shanghai General Motors are turning to Google’s AdMob unit to reach the highly mobile Chinese smartphone users.
Google’s China strategy has been a hit and miss affair and the company has been experimenting with its various products and services. AdMob has now a significant share of the market.
According to iResearch, revenue in China’s mobile-app ad market will probably more than double to about 1.8 billion yuan ($283 million) this year, exceeding the 1.2 billion yuan from mobile-search queries.
In contrast to search related ads that pop up as part of the results, in case of apps-related ads, these are sent directly to the phones based on the application downloaded and used by the subscribers.
AdMob was acquired by Google in 2010 for $750 million and now has more than 10,000 registered developers in China.
Market research firm IDC has already forecast that China is set to overtake the United States as the world’s largest smartphone market in 2012 with more than 135 million phones being sold.
AdMob has managed to make inroads into devices such as the iPhone and iPads that has caught the imagination of the Chinese youth.
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