Ads WeaknessAds weakness is expected to continue, and monetization remains difficult compared to traditional search.
Advertising Revenue DeclineBaidu remains in the midst of a strategic transition as its core ad business faces growth headwinds, with ad revenue down 15% y/y in 2Q25 and GenAI search monetization still in early stages, keeping the 2H ad outlook muted.
Core Search PressureCore search is likely to still see pressure as Baidu iterates from traditional to generative search, but the decline is well-anticipated by the Street.