Market share not everything (Score 1)

Which company is more successful in the long run depends on which is capable of generating more income. By that measure, Google is probably doing much better than Baidu. There is an interesting comparison from CNNIC: www.cnnic.net.cn/download/2005/2005083101.pdf Two comparisons in particular stand out: 1) Google has LARGER market share for non-student users with income over 1500 RMB (~$200); for those with income over 5000 RMB (~$600), Google 58% vs Baidu 26% 2) Most of those who use Baidu as a secondary engine, use it primarily for MP3s, while Baidu/Google users switch to Google for general web searches and purchasing So Baidu has a much larger base of users who are not planning to spend money. Thus, advertisers are not going pay the same rates as for Google.