Google Inc., which shut its search- engine service in China this year after a censorship dispute with regulators, slipped to third place behind Alibaba Group Holding Ltd. in online advertising sales in the world’s biggest Internet market by users, a research company said.

      Alibaba accounted for 9.3 percent of China’s online ad sales in the third-quarter, rising from 7.8 percent three months earlier, Analysys International said in a statement today. That ranks the company behind only Baidu Inc., after Google’s market share fell to 8.9 percent from 10.8 percent, Analysys said.

      Google has lost market share in China since January, when the owner of the world’s biggest search-engine said it was no longer willing to comply with Chinese online censorship laws. Closely held Alibaba, China’s biggest e-commerce company, has increased sales of keyword advertising on its websites including Taobao.com and Alibaba.com.

      Justine Chao, a Hong Kong-based spokeswoman at Alibaba, declined to comment. Marsha Wang, a Beijing-based spokeswoman at Google, couldn’t immediately be reached on her mobile phone.

      Google’s combined revenue in China from display ads, online search and Chinese companies marketing on Google’s global sites has increased this year, Daniel Alegre, the company’s vice president for the Asia-Pacific region, said this week. Google’s online ad sales in China rose to 679.8 million yuan ($102 million) in the third quarter, from 627 million yuan a year earlier, Analysys said.

      Baidu, owner of China’s biggest search-engine, remained the leader in the local online advertising industry with 30.1 percent market share last quarter, according to Analysys.

      Google’s search-engine business in China is “solid,” Alegre said this week without elaborating. In March, the U.S. company shut its China-based search service and directed local users to a Hong Kong site to avoid regulations for websites to self-censor content.

Source from Bloomberg

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