Google tries profits from mobile advertising in China

The U.S. search engine giant Google Inc has tried to push its way in mobile advertising in China as the country is expected to overtake the United States to are world's largest smartphone market this year.

Mobile advertising is one of the few high-key strategies announced by Google China, that is low-key, shrank the portfolio in the country last month amid a declining market share.

The company is planning to his footprint in the sector of mobile advertising with its solutions which ads appear on mobile applications, Web pages, mobile search results and online videos.

Ad requests in the mobile sector through the Google products rose by 120 percent from July 2011 to July 2012 in China, and the country is one of Google's top five countries by the advertising request volume, according to the company.

"[The mobile advertising business in China] has very good progress so far and it is a company that is growing the fastest," said John Liu, corporate vice President of Google. He did not elaborate on the details of mobile advertising in the country.

While Google pins his hopes on the mobile advertising business in China, it is still a difficult too hard for the US company to bridge the gap with Chinese rival Baidu Inc., analysts said.

"It is possible that the mobile activity will help Google to improve the performance in China," said Hong Bo, Beijing-based IT consultancy company IT5G critic who founded.

A growing number of people turn to their mobile devices to access the Internet and mobile applications, allowing Google to generate income by spreading the ad on the Web pages and applications.

However, "user experience of mobile ad still is not satisfactory and there are doubts about whether it is possible to make so much money on mobile devices and personal computers via ads," he added.

Robin Li, Chairman and chief executive officer of Baidu, earlier expressed similar concerns. The most successful business models on personal computers-advertising, online games and e-commerce are confronted with challenges on mobile devices, said Li.

"Mobile advertising is growing at a rapid pace, but its value is not so much as ads appear on PCs because of the small size of mobile phone screens and the fragmented time users spend on them," he said in a forum in June.

Even in developed markets of the Internet is mobile advertising still weaker than PC advertising in the ability to generate revenue, Li added.

It is not known how much mobile advertising contributes to the total turnover of Google. However, Jim Friedland, an analyst at US-based financial services company Cowen Group Inc., earlier this year estimated that mobile advertising accounted for 3% of the total turnover of the Google's in 2010, 7 percent last year, and will almost double to 13 percent in 2012, according to a report by technology website Techcrunch.com.

In China are currently the most commonly used devices mobile phones to access the Internet. The number of people accessing the Internet via mobile devices rose to a record high of 388 million at the end of June, according to a report by the China Internet Network Information Centre.

China is also expected to pick up the USA om's world's largest smartphone market this year, according to a report from market research company IDC in August.

In the second quarter had Baidu 78.6% of the market in China, measured by turnover, while Google had 15.7 percent, according to research company Analysys International domestic.

The u.s. search giant reached its peak in China in the fourth quarter of 2009, company 35.9% of the market, but grows the gap between Baidu and Google now, especially after Google moved its servers and mainland traffic redirected to Hong Kong in 2010.

Last month, Google shut down its music search service in China because it was not as influential as hoped, further shrinking its activities on the Chinese mainland. Google launched the service in 2009, aimed at resisting competition from Baidu, which then provide users with links to websites of copyright infringing music.

At the end of June China had 538 million internet users, the most in the world.