Three structural forces squeeze Baidu's search-ad funnel. Toggle each one to see how it dims the monetizable ad base at the bottom.

Why Baidu search-ad revenue keeps shrinking A search-ad funnel from query to ad impression is compressed by outward budget migration to content apps, inward Ernie-answer cannibalization of link clicks, and macro weakness cutting overall budgets. Search query queries pool Ernie AI answers Macro weakness property downturn weak consumer spend content apps ad budgets follow Douyin RedNote WeChat budgets migrate out In-line answers no link click AI-native marketing flat — can't replace link clicks ad base Ads revenue declines multi-quarter contraction