Medical advertising regulations in China underwent a change after a recent incident where Baidu was accused of promoting false medical information. The negative publicity and revised regulations are impacting the company’s market share in the digital advertising segment. A recent report suggests that Baidu’s share in China’s digital ad market is expected to drop to 21% compared to 28% last year. Alibaba is set to gain some of this share and is likely to command nearly 30% of China’s digital ad market. Search services is the most valuable segment for Baidu as per our estimates, accounting for more than 70% of its valuation.
One of the key drivers of this segment is search services revenue per user and we expect this number to increase steadily from around $14 in 2016 to nearly $22 by the end of our forecast period.

from Forbes – Tech http://ift.tt/2d6rZyQ
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