SHANGHAI, Oct 24 (Reuters) - China’s largest search engine Baidu Inc estimates its advertising revenue will exceed 20 billion yuan ($3.20 billion) this year, up from 14.5 billion yuan last year, NetEase Technology News reported, citing Baidu’s vice president.
Baidu will report third-quarter results on Monday. The firm posted 9.8 billion yuan ($1.6 billion) in online marketing revenues for the first half of the year.
Wang Zhan, Baidu’s vice president in charge of sales, was quoted as saying at an industry event that advertising sales last year exceeded 14 billion yuan ($2.2 billion) and this year were expected to surpass 20 billion yuan, according to the news site of Internet firm NetEaseInc.
Wang’s projection indicates that Baidu is still bullish on China’s online advertising market and sees a faster rate of sales in the second half of the year. A Baidu spokesman declined to comment when asked about the article posted on Tuesday.
This month, Baidu’s shares slumped after Credit Suisse downgraded its stock to “underperform” from “neutral” on concern that it may not be able to hold on to its search market monopoly.
Qihoo 360 Technology, a Chinese anti-virus software company, launched a search engine in August that has begun to eat into Baidu’s market share.