Baidu warns on 'subdued' China consumer spending despite stimulus

Tech group says ad business is under pressure, gives no timeline for monetizing AI search

20241121 baidu

Baidu’s advertisement revenue largely comes from its search engine, but the success of WeChat and other apps are eating into their market share. © Getty Images

ECHO WONG and CISSY ZHOU, Nikkei staff writers

HONG KONG -- Chinese internet giant Baidu reported its biggest quarterly sales contraction in two years as online ad sales, the company's core revenue source, fell short of expectations.

In an earnings call, interim Chief Financial Officer He Junjie said he has not seen "notable improvement" in advertising spending from key clients despite Beijing's recent efforts to stimulate the economy.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.