Cai Jing Wang·2025-08-06 07:13Core Viewpoint - Baidu's second-quarter advertising revenue is expected to fall short of Deutsche Bank's previous forecasts due to a faster-than-anticipated shift in search behavior towards generative AI search [1] Group 1: Advertising Revenue - The transition from traditional search to generative AI search has impacted the commercialization aspect of Baidu's advertising revenue [1] - Deutsche Bank has lowered its 2025 revenue forecast for Baidu by 4% to reflect a weaker advertising outlook [1] Group 2: AI and Cloud Business - Baidu is exploring commercialization strategies for new AI-generated search traffic, but improvements in advertising revenue may take time [1] - The cloud business segment is expected to maintain strong momentum, supported by sustained strong demand for generative AI and its underlying models [1]