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Recently, Baidu Search Engine (Baidu) published its 2024 Financial Report which show some signal to the China search engine market.
The report reveal a total revenue of 133.1 billion yuan which makes a 1% year-on-year decline. The primary reason for this drop is the decrease in search engine advertising revenue.
However, the company reported an operating profit of 23.4 billion yuan, a 21% year-on-year increase, driven by strategic cost reductions that enhanced profitability.
The Rise of DeepSeek and Its Effect on Baidu
Previously, Baidu’s primary competitors were Rednote (XHS) and WeChat Search, and now one more – DeepSeek. Before that, AI-powered search engines were not a major concern due to their high operational costs and limited accuracy.
However, the introduction of DeepSeek, particularly its integration with WeChat via DeepSeek-R1, has impacted Baidu. According to recent data from the WeChat version of DeepSeek, Baidu’s search contribution plummeted from 90% in 2021 to 52.79% in 2024.
This decline is most evident among younger users, who now favor Xiaohongshu and Bilibili for search-related needs.
Moreover, recent statistics indicate that WeChat DeepSeek processes an average of 700 million daily searches, which showcase a shift in user behavior.
Previously, users turned to Baidu Search Engine when WeChat could not provide sufficient results. Now, many prefer DeepSeek’s AI-driven search, and this highlight the increasing reliability and efficiency of AI search engines.
Challenges and Future Development of DeepSeek
With a rapid adoption, WeChat DeepSeek still face some challenges.
1. Content Validation – Ensuring that data from WeChat Official Accounts and Video Accounts undergoes strict professional annotation and cross-validation to maintain accuracy.
2. Data Labeling – AI search engines rely heavily on well-structured, high-quality data. Proper classification, indexing, and retrieval techniques are crucial to improving search relevance.
3. User Experience – While DeepSeek shows promise, its stability, response time, and accuracy need continuous refinement to maintain user trust.
A well-trained AI search engine depends on a robust data foundation, much like scientific research—even minor errors in data structuring can lead to inaccuracies.
As a result, precision and systematic development are essential for DeepSeek to succeed.
Baidu’s Legacy and the Changing Search Landscape
Founded by Robin Li, Baidu has played a role in China’s digital landscape over the past twenty years. The company has developed several pioneering products, such as Baidu Search Engine, Baidu Tieba, Baidu MP3, and Baidu Zhidao, to cement its place as a dominant search engine in China .
However, with the rise of AI-driven platforms like DeepSeek, a new era of search innovation is emerging. Unlike traditional content recommendation systems like Toutiao and Douyin, which rely on passive content delivery, AI search allows users to actively refine their queries for more accurate and relevant results.
SEO Implications and Future Trends
The rapid evolution of AI-powered search engines means businesses must adapt their SEO strategies accordingly.
Here are some key takeaways:
1. Focus on High-Quality Content – AI search engines prioritize well-structured, authoritative, and informative content.
2. Optimize for Conversational Queries – As AI models advance, users are shifting towards natural language search patterns, making long-tail keywords and question-based queries more relevant.
3. Leverage Structured Data – Using schema markup and structured data can enhance content visibility in AI search results.
4. Improve Website Performance – Faster loading times and mobile-friendly designs are crucial for user retention and higher rankings.
Conclusion
The competition between Baidu Search Engine and AI-driven platforms like DeepSeek is intensifying. As AI search technology advances, companies must prioritize SEO adaptability, structured data optimization, and high-quality content creation.
While DeepSeek shows great promise as the next generation of search, its success will ultimately depend on data integrity, infrastructure scalability, and user trust. Whether Baidu will retain its market dominance or DeepSeek will redefine the search industry remains an open question—but one thing is clear: the search landscape is evolving rapidly, and businesses must adapt to stay competitive.
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