Baidu is facing an unlikely challenger in China's search market — TikTok owner ByteDance

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Baidu is facing an unlikely challenger in China's search market

Growth is expected to be 11.6% this year compared to 12.4% last year, according to China-based market research firm iResearch. That growth rate is expected to slow to 9.7% in 2020. This could make it more difficult for Baidu as an increasing number of players vie for the ad dollar.

Advertising accounted for around 73% of Baidu's revenue in the first quarter of 2019, and a slowing ad market and increased competition could make it difficult for the company. That's one reason why Baidu's shares are down more than 37% so far this year. The company forecast it could see a year-on-year decline in revenue for the second quarter of 2019.

At a media briefing on Thursday, a Baidu executive said the company has continuously faced challengers but has maintained its dominant market share.

 

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