Google Continues South-East Asian Expansion

Online, August 29, 2011 (Newswire.com) - Google Inc. will continue to invest in Southeast Asia, the fastest-growing market for the U.S. Internet-search and services company. The company said on Wednesday that said it is opening an office in Bangkok, the second local operation that the company has started in the region this year. Google, based in Mountain View, Calif., opened an office in Kuala Lumpur in January, and set up offices in Singapore and South Korea in 2007. An executive said Google sees a "massive" growth opportunity in bringing businesses online in Southeast Asia, with the region's economies heavily reliant on exports to drive their growth.

The company is stepping up expansion in countries including Thailand, Malaysia and Indonesia. Google may buy technology assets to expand in South-east Asia, following Internet operators including Tencent Holdings and LivingSocial in acquiring companies to add services and users in the region. Google aims to hire 500 people in Asia this year, with about one-fifth of that total in Southeast Asia. Southeast Asia, like China, presents sizable challenges for technology companies. Several countries, including Vietnam and Thailand, have sought to limit political debate online in recent years by attempting to block some sites, including Facebook, or by jailing dissident bloggers. BlackBerry maker Research In Motion Ltd. installed filters on its smartphones in Indonesia to comply with a government order to block pornographic material. In China, Google had to reroute its Internet search engine to Hong Kong last year due to censorship concerns.

The strategy is aimed at increasing the country's online advertising spending. Thailand's online ad spending accounts for less than 1% of an annual 90 billion baht in total ad spending. The establishment of Google Thailand offers concrete evidence of a long-term investment commitment and opens a new chapter for the local internet industry. Advertisements constitute 50% of total ad spending in the United Kingdom and 30% in the United States. The Thai operating unit will handle sales, marketing and supporting partners and customers in a closer relationship than with the Singapore office previously.