Google Wins Internet Advertising Contract with China Telecom

Press Release - April 27, 2007

Search giant, Google Inc., is poised to increase its share of the Chinese internet advertising market, due to a new agreement with China Telecom.

Google has won the right to place ads of 400 of the telecom giant’s websites, giving it valuable leverage against Microsoft, and leading local rival, Baidu.com.

“This is a big win for Google because Microsoft and Baidu both wanted this agreement with China Telecom,” said Analysys International internet analyst, Foo Xinghua, in a telephone interview. “China Telecom likely picked Google because they have better technology for Web ads.”

China’s internet advertising market will surge to US$3.1 billion in 2011, from $420 million in 2005, according to Credit Suisse Group estimates.