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Monday, January 25, 2010

China rejects claims of cyber attacks on Google

BBC

China has denied any state involvement in alleged cyber attacks on Google and accused the US of double standards.

A Chinese industry ministry spokesman told the state-run Xinhua news agency that claims that Beijing was behind recent cyber attacks were "groundless".

US Secretary of State Hillary Clinton this week asked China to investigate claims by Google that it had been targeted by China-based hackers.

The US search giant has threatened to withdraw from China.

"The accusation that the Chinese government participated in [any] cyber attack, either in an explicit or inexplicit way, is groundless. We [are] firmly opposed to that," the unnamed spokesman of China's ministry of industry and information technology told Xinhua.

"Isn't it true that even in the United States, the homeland of Google, certain government agencies are also reported of often entering a massive number of personal e-mail accounts with certain excuses?"
China Daily newspaper

"China's policy on internet safety is transparent and consistent," he added.

Separately, China's state-run China Daily newspaper said America's internet strategy was "to exploit its advantages in internet funds, technology and marketing and export its politics, commerce and culture to other nations for political, commercial and cultural interests of the world's only superpower".

It also described the US government as being hypocritical, saying the country's "certain government agencies" had reportedly illegally checked a massive number of personal e-mail accounts.

On Thursday, Mrs Clinton urged Beijing to investigate the alleged cyber attacks on Google.

Hillary Clinton: "We look to the Chinese authorities to conduct a thorough review"

"We look to Chinese authorities to conduct a thorough investigation of the cyber intrusions," she said.

Mrs Clinton added that companies such as the US giant should refuse to support "politically motivated censorship".

Again in reference to China, she said that any country which restricted free access to information risked "walling themselves off from the progress of the next century".

Google said on 12 January that hackers had tried to infiltrate its software coding and the e-mail accounts of Chinese human rights activists, in a "highly sophisticated" attack.

The California-based company, which launched in China in 2006, said it would quit the country unless the government relaxed censorship.

On Tuesday, the Chinese government said Google and other foreign companies had to obey the country's laws and traditions.

The same day, Google said it was postponing the launch of two mobile phones in China.

When Google launched google.cn four years ago, it was criticised for agreeing to Beijing's demands to make certain search results off-limits - including those relating to the 1989 Tiananmen Square protests, Tibetan independence or Falun Gong.

China has more internet users, about 350 million, than any other country and provides a lucrative search-engine market worth an estimated $1bn (£618m) last year.

Google holds about a third of the country's search market, with Chinese rival Baidu having more than 60%.

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Sunday, January 24, 2010

Google Will Stay in China, Poll Says

Google Will Stay in China, Poll Says

NEW YORK (TheStreet) -- Despite the heated battle over censorship and security breaches, Google(GOOG Quote) is not expected to leave China, according to TheStreet users
An overwhelming 66.4% said Google would stick it out, while 33.6% said the company would cease doing business in the country.

Google's fourth-quarter earnings report, which raised some concern of future growth prospects, could be one reason why voters believe Google will stay in the country.

On Thursday, the company reported earnings of $1.97 billion, or $6.13 a share, compared with $382 million, or $1.21 a share, in the year-ago period. Excluding special items, Google would have earned $6.79 a share, better than the $6.48 analysts expected.

Revenue grew 17% to $4.95 billion. While this matched Wall Street's forecast, it disappointed investors who believed the company would significantly surpass estimates.

The other red flag came from search paid clicks, which were lower than last year.

While the amount of Google's business coming out of China is minimal (analysts estimate only about 3% of its revenue will come from the country in 2010), exiting the country could have severe consequences for the future growth of the company.

China boasts one of the world's fastest growing Internet markets. In 2008, the country outpaced the United States, and now claims the most Internet users in the world.

Google did not reveal any new developments in its plans with China during its earnings call, simply stating that it would like to continue to work with China, but intends to stop censoring search results in the country within "a reasonably short time."

The battle between Google and China arose after Google reported a cyber-attack that seemed to target human rights advocates in the country.

On Friday, Beijing shot down U.S. claims that China is hindering the free flow of information over the Internet. Foreign Ministry spokesman Ma Zhaoxu said regulations are in-line with Chinese law and do not hurt the cyber operations of the rest of the world.

The Internet company also said that it will no longer adhere to China's censorship demands. Since 2006, Google has filtered its search results on its Google.cn, in compliance with the country's wishes.

Earlier this week, Google announced that it will delay the launch of two phones in China that use its Android operating system. The devices are from Samsung and Motorola(MOT Quote) and were set to launch on Wednesday.

-- Reported by Jeanine Poggi in New York.

Newspaper ads still the most effective

Newspaper ads still the most effective

By EUGENE MAHALINGAM
eugenicz@thestar.com

ADVANCES in technology may have spurred the growth of various forms of media, but newspapers are still a staple of our society and they continue to grab the lion’s share of advertising expenditure, says Omnicom Media Group (OMG) managing director Andreas Vogiatzakis.
Andreas Vogiatzakis ... ‘Habits don’t change dramatically.’

In its latest Optimum Impression 2009 study, OMG reveals that 57% of newspaper ads got noticed – which has been the trend since 2003.

“From the study, we found that habits don’t change dramatically. Newspapers continue to dominate in the ad spend despite the decline in ad spend,” says Vogiatzakis.

OMG director of communication insights for Asia Pacific, Guy Hearn, says the fact that the majority of ads were noticed by readers was proof of the continued relevance and importance of newspapers to advertisers.

He says that ad relevance picked up especially during a global economic downturn. In the study, it was revealed that readership of print newspapers in Malaysia rose 32% in 2009.

“Last year was the recession and the trend is that people spent more time at home. With the news that was going on in the marketplace, people wanted to be more informed about what was going on,” he explains.

Held in August last year, the study covered 2,452 different ads in 15 main newspapers and 1,023 readers aged 15 to 54 in Kuala Lumpur, Petaling Jaya, Penang, Ipoh and Johor Baru. Overall, there was a total of 14,522 ad exposures.
Guy Hearn ... ‘People wanted to be more informed about what was going on.’

The newspapers surveyed comprised five English newspapers (The Star, The Sun, New Straits Times, The Malay Mail, The Edge), six Chinese dailies (Sin Chew Daily, China Press, Kwong Wah, Guang Ming, Nanyang Siang Pau, Oriental Daily) and four Malay dailies (Utusan Malaysia, Kosmo, Harian Metro and Berita Harian).

OMG research manager Yong Shel Vei, in presenting the results of the study, says that ad noting among Malay language readers was the highest.

“More than two thirds (68%) of ads were noticed by these readers and this is probably due to the lower ad clutter in Malay language titles. On average, Malay language newspaper readers are exposed to 15% less ads than the Chinese language newspaper readers,” she adds.

Vogiatzakis says it is immaterial whether an advertiser chooses to place an ad in a paid or free newspaper.

“From my professional experience in Malaysia, once the decision is made to pick up the free paper and flip through the pages, whether it’s paid or free, it doesn’t matter,” he argues.

“If your creative is strong and is of substantial importance, like targeting a housewife with a shopping coupon, I guarantee you she will pick it (the newspaper) up. The fundamentals don’t change. You have to have a great product and an idea that captures the heart and mind of the consumer.”
Yong Shel Vei says ad noting among Malay language readers was the highest.

Overall, the study revealed that ad noting on Saturdays was highest due to lower ad clutter. The study also revealed that newspaper circulation had surged to 4.8 million currently from 800,000 in 2003.

“The higher ad noting on Saturdays is also possible because people have more time to read the newspapers on that day,” says Yong. She adds that ads that are larger have a higher chance of being noticed.

“Bigger ads are not only more likely to get the reader’s attention, they also enhanced the brand recall and increase the chances of readers reading the ad and absorbing its message. A full-page ad yields 21% higher ad noting than a quarter page,” she says.

Coloured ads were also revealed to attract attention. According to the study, 59% of coloured ads were noticed compared to 53% of black and white ones. Ads placed on right-hand pages were also more likely to be noticed, especially in tabloids.

Yong also says ads that were creative were better recalled by readers. “Media creativity enhances ad noting by 15%, ad read by 30% and brand recall by 25%.”

She says sandwich ads, namely those placed in the middle of a page between news articles, could generate as much as 40% higher ad noting.