China's search industry to face "sharp slowdown"

According to Analysys International, an Internet based provider of business information, China’s search engine industry will experience a sharp slowdown in revenue growth over the next 18 months. Search engine users are dissatisfied with search results and advertisers aren’t seeing the numbers they expected.

“The user experience is not satisfying. When a user types in a word to a search engine, it is likely the user doesn’t get what he or she exactly wants, which leads to low brand loyalty.” Analysys International says over 46% users turn to other search engines or portal websites when they don’t get what they want in a search engine.

Most important, Analysys International says, some small and midsize businesses that advertise on search engines are not satisfied with the advertising results. And the dissatisfaction is still increasing. Search engines haven’t brought the value they had expected to them. According to Analysys International’s research of 1500 samples, only 20% search engine advertisers obtained results that exceeded their expectations, while about 29% didn’t get the results they had expected and were considering reducing or suspending their search engine marketing expenses.

The user experience is also reflected in Keynote Systems’ Customer Experience ranking, a study of search engine users in China, which revealed a high level of dissatisfaction by the users.

Source: Analysys International

David Temple

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