Untitled e1291949728165 Alibaba now tops Google in online advertising share in ChinaGoogle’s decline in the Chinese search market has been widely documented this year after it withdrew from the country over allegations of hacking and its refusal to censor search results.

The final irony being Google’s own Zeitgeist 2010 figures released yesterday that show the top search term in China in 2010 was Baidu.

Now, new figures have been released for the third quarter of 2010 that show Google has given up the second place slot in online advertising in China to e-commerce giant Alibaba.

Rank Company Percentage
1 Baidu 30.90%
2 Alibaba 9.27%
3 Google 8.90%
4 Sina 8.89%
5 Tencent 6.14%
6 Sohu 5.57%
7 Netease 2.16%
8 Others 28.17%

The figures, released by Beijing based research firm Analysys International show that Baidu still has the largest share of the online advertising market, but, that Alibaba has now passed Google to take second place.  Alibaba is the owner of taobao.com, China’s largest online marketplace.  It is TaoBao that probably accounts for Alibaba’s strength in the online advertising market.

Also interesting is Sina, and even Tencent who are very close to pushing Google even further down the table into fourth or fifth place when the figures for the fourth quarter are released.