LG Refuses To Place Internet Advertising On Baidu.com In China

[bill]

mp3 searches are a major part of Baidu traffic according to some sources. This campaign by the music industry seems to be gaining some momentum.

LG Refuses To Place Internet Advertising On Baidu.com In China [chinatechnews.com]

The Music Copyright Society of China said at a press conference that the activity it launched in June 2008, aiming to call for suspension of advertising on Chinese search engine Baidu, has gained some success and some brands, including LG, said they currently would not put advertisements on Chinese search engine Baidu.

...

As a major customer for Internet companies, the annual advertising costs of LG run into the tens of millions of yuan. At the same time, other advertisers say they are waiting for the decision of the court to decide whether to continue the advertising cooperation with Baidu.

[vincevincevince]

Disappointing to me that with so many serious ethical problems at Baidu to choose from that LG chose the money-based MP3 issue for their objections.

[bill]

I doubt ethics was much of a factor in this decision. They're wary of the potential legal implications down the road. Plus they have more to gain by siding with their buddies in the media industry.

I doubt we'll see a major Chinese conglomerate like LG chastising another Chinese Internet company about censorship issues. ;)

[vincevincevince]

Just a note to the above:
LG is South Korean and Baidu is incorpoated in the Cayman Islands and listed on the NASDAQ. Neither are legally Chinese and only one is effectively Chinese.

[bill]

You're right. I had another Chinese manufacturer in mind when I posted that. It's a rough day in Japan with today being the beginning of the 2nd half of the fiscal year for most companies. Sorry.

I'll stick with my first paragraph for now. ;)

[seo4china]

Well, they are just leaving on the table 2/3 of the search market in China. It is not their Chinese competitors who will complain...