Google Advertisers Urged to Defect on Speculation of China Exit

Google advertisers in China are being advised to switch to rivals such as Baidu and business partners are exploring alternatives as speculation grows the U.S. company will shut its Web site in the country.

"When we talk to clients, we have been pushing them in the direction of Baidu more," said Vincent Kobler, managing director at EmporioAsia Leo Burnett in Shanghai, which buys advertising on behalf of customers. "The Chinese government has taken a firm stance, and Google, they have their own principles, and are going to shut down." Google clients and partners may be turning more pessimistic about the company's prospects of operating in China after the government last week said a plan to end censorship at the Google.cn site was "irresponsible." Failure to end the dispute may lift sales at Baidu and Sohu.com Inc., and force partners such as China Mobile Ltd. and Sina Corp. to review co-operation.