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Google to Halt Cooperation with 7 Southeastern Ad Resellers

Hexun, 9/30/10

Representatives for seven ad resellers who had their reseller status revoked by Google say Google has responded to their complaints, saying that it would cancel the meeting to recruit new ad resellers it had scheduled for September 30, and that Google director of sales for the Asia-Pacific region Aliza Knox will contact representatives for the resellers for further communications after the week-long National Day holiday at the start of October.

The seven ad resellers - Hangzhou eCentral, Wenzhou Zhongzi Futou Technology, Ningbo 5ENET Technology, Jiangsu Fuw-Group.com, Yangzhou Dingjie Technology, Xiamen Yizi Network Services, and the Jinhua branch of Hangzhou GoTo Network Advertising - were notified by e-mail on September 27 that their reseller status would be revoked.

In an open letter, the resellers noted that the coastal region of China, where all of them are located, is an area where Google sales have been relatively high, with coastal resellers named "Best Reseller" for three years in a row, and ad spend accounting for 41% of ad resellers throughout the country. The resellers suggested in the letter that the revocation of their statuses might be the work of a Google employee seeking to abuse his position and harm Google's operations for personal motives.

In its response, Google China said that in order to better serve its advertising customers, it has recently been making adjustments to reseller channels in China that have led it to terminate its partnership with some resellers. Google is actively seeking new resellers at present.

Editor's Note: A representative for the ad resellers said Google had given no reason for its revocation of the resellers' status. Hotsales.net, Google China's main ad reseller in the Shanghai region, reportedly received an evaluation warning that it had failed to meet performance targets. A spokesperson for Hotsales.net said he was unaware of the matter.

Liu Pu, chairman of Zhongzi Futou, said that Google's revocation of Zhongzi Futou's reseller status was a plan between a Google China employee and some unknown co-conspirator, and predicted that Zhongzi Futou's Jiangsu subsidiary would have its reseller status transferred to Beijing-based Zibolan, while its Zhejiang subsidiary would be transferred to Beijing-based Zoom Interactive.

Keywords: online search Aliza Knox Internet reseller Google Zibolan online advertising

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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