Gordon Choi put up a post on the Google-Sina tie up. His contention is that Baidu is attracting a great deal of resentment in China – in the same way that Google is doing over here – simply for being the biggest and more concretely for the potential to leverage its lead in search into content to maintain growth.
Google’s application for a content licence should also be linked with another element – the push for portals.
With Sina.com‘s (pronounced seena) alliance with Google. What used to be the most popular website in China has teemed up with China’s Number 2 search engine. Pretty much like the Yahoo!-Microsoft deal that wasn’t.
It is an AdSense deal, and a good deal for Google. However Google makes its cash over here on search as AdSense is a poor return for many smaller and less savvy advertisers (although Sina.com is hardly likely to get into click fraud).
Google can make money by focussing on matching its adverts, which it does better than Baidu, rather than using its not so good AdSense technology.