In Q2, China online travel OTA market share was quite stable with Ctrip, Elong and 17u staying as the top three players. Ctrip topped with 48% share, followed by Elong with 9.1%, 17u with 6.5%.

Ctrip, 17u, 118114, Mangocity had advantages in air tickets booking market; Ctrip, Elong, 17u, 118114 occupied large percent of hotel booking market; Ctrip and 17u enjoyed a big share in vacation booking market. Online travel market was highly competitive, partly due to the popularity of mobile online services.

Baidu, with its widespread map service, bought Qunar shares to control air tickets booking markets; Alibaba invested in amap and qyer, etao entered online travel market as well; Tencent invested in Elong and 17u, extending its online travel business on Weixin Platform.

China online ad market in Q2, from iResearch data, reached 23.26 billion yuan (USD 3.8 billion), growing 17.4% compared to Q1 and YoY growth of 27.4%. China online ad market is entering to a steady growth stage.

In Q2, search, video, news and navigation monthly usage increased. NetEase, Taobao and eTao had more than 10% QoQ growth, Sina, Sohu and iFeng had more than 7% QoQ growth.

Search engine ads kept growing in Q2 with 36.4% online ad market share. Vertical search ads and brand banner ads dropped slightly compared to Q1, with 22.4% and 21.2% share. Video ads grow steadily with 6.7% share.

Baidu, Google and Sogou promote the grow of search engine ads, market new player Qihoo’s 360 will further push it. Vertical search ads is due to the fast growth of Taobao search, online shopping increase brings up vertical search ads. High quality video content, such as movies, TV dramas and shows boost video ads growth.

In China top 10 online ad market companies, Baidu was still the leader with 7.56 billion yuan in revenue. Taobao came to the second with 5.61 billion yuan. Taobao, Qihoo’s 360 and Sohu had grown by more than 40%.

Qihoo’s 360 main revenue comes from navigation, growing steadily. Qihoo’s search ads conversion keeps increasing. Taobao has lots of small business which provide growing need for advertisement.Sogou search engine and its video contributed to its revenue growth.

On Dec 12 last week, Google officially announced its decision to close down China shopping search engine.

Previously, some media revealed that Google was going to inform its partners in China the closure of shopping search engine. Confirmation in received by Google on Dec 12.

Google’s shopping search engine was released in May 2009 to compete with local shopping search websites like Etao. Google says, the influence of shopping search engine didn’t reach the expectation, and they are planning to focus on mobile advertising products, mobile and PC advertising display, export-oriented search advertising products. Chinese merchants could still use Google Shopping to reach consumers in other markets, Google said in the statement.

This is the second time that Google shut down its service in China in recent 3 months. It was in Sep that Google announced its decision to stop its music search engine.