Market research firm Analysys says that China's Internet search engine market reached CNY303 million in the first quarter of 2006.

China's biggest search engine Baidu occupied a leading market share of 43.9%, seconded by Yahoo China, with market share of 21.1%. Google ranked third in Chinese marketplace with market share of 13.2% in Q1 2006.

According to the report, in the first quarter of 2006, revenues from Pay per Click Search Engine Bidding reached CNY175 million; revenues from fixed position search engine advertising reached CNY9 million; and revenues from real-name keyword registration and advertising services reached CNY120 million.

Analysys International says the combination of search engine with e-commerce is drawing people's attention. To advertisers who deal in international trade, Google has advantages on multi-language advertising, such as Korean and Japanese ad-words advertising.

However, in major areas such as Guangdong, Jiangsu, Beijing, Shanghai and Zhejiang, Baidu is more favored by online marketing advertisers. The market size of real-name keyword registration and advertising services has undergone negative growth.