The leading South Korean Internet portal, Daum Communications Corp. has recently inked deal with the web search leader Google Inc. Daum has entered the deal with an aim to win back the top slot in the local search market. Under the arrangements of the deal Daum will now start using Google’s AdSense system to create a better interface between advertisers and the Internet user’s search terms.
The financial aspect of the deal has not been disclosed yet since the agreement has been kept confidential. Daum as of now has around 38 million registered users and it accrue more than one third income from advertising. In the recent quarter, Daum’s advertising sales shot up by 31.6 percent compared with the corresponding quarter last year.
Announcing the deal with Google, Daum’s officials have stated that the ad sales of the industry are expected to grow 27 percent. They further said that the company will try to exceed this projected growth rate. On the other hand Google derives its 39 percent of income amounting to $1.04 billion from AdSense used by affiliated web sites.
Despite of the fact that Google’s global web search market shares exceeds 60 percent but it struggles in South Korea as the local rivals offer heavy graphics and a wide range of Korean-Language content.
