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November 17, 2005
Google adds 5th reseller in China
Pacific Epoch have a breaking story on Google adding a 5th reseller in China.
Google (Nasdaq: GOOG) named its fifth Chinese advertising reseller on Thursday, reports Sina. The new agent will be Beijing based Splendor Technology, which has been an agent for 3721's real name service and Yahoo China's paid ranking service. Splendor will be responsible for selling Google's AdWords service in Beijing, and the license is effective for one year starting on October 1.
So here's some facts and info you may NOT know about Google and it's Chinese reseller model.
Google already has 4 resellers
Search Resellers in China typically work on anything between 20% > 45% agency/reseller comission (3721/Yahoo/Baidu have been heard to pay this much in the past)
Google resellers are regionally based if I am correct, so a reseller in Beijing can only pitch Chinese clients in their regional area, so a client in Shanghai could NOT work with a reseller in Beijing.
These resellers are typically very aggresive outbound call centres and NOT search specialists from my limited exposure.
Resellers in China like to sell CPC ads, on a CPM basis or even on a monthly tenancy model as Online advertising here is still very much NON measured and therefore similar to tradional media along the lines of fixed term placement in a magazine or portal home page.
Baidu are currently working aggresively on their Self service model such as Google's adwords to tackle global clients, whilst Google are headed down reseller route to get local clients.
Posted by shak at November 17, 2005 4:39 PM
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I believed that Google will develope more and more resellers in the coming year.
Sooner or later, comission rate will be different according to the performance of different reseller.
Google started the china reseller program by finding first three companies who tegether can covering almost china. Then the fourth for Guangdong Province.
Now the fifth for Beijing, Google will begin a more localization reseller program.
Now every aggresive resellers has a chance to play a google GAME in the coming year.
Because Google's person are still travelling everywhere for new reseller.
Posted by: Inway at November 18, 2005 7:27 AM