AI Reshaping the Search Ecosystem: New Marketing Opportunities Amid Baidu’s Evolving Algorithm
Key Insight: Technological Evolution Creates New Rules—Those Who Adapt Will Lead Tomorrow
While Baidu’s increasingly complex search algorithms have been challenging for businesses, its AI transformation also presents fresh opportunities. In 2024, Baidu Cloud revenue grew 26% year-over-year, with its Wenxin large language model achieving 1.65 billion daily API calls. Following integration with DeepSeek, inference costs dropped by 70%. Against this backdrop, businesses must redefine their marketing strategies.
1. Prioritize Multimodal Content: Video and Rich Media as Breakthrough Elements
Baidu’s 2025 algorithm will increase the weighting of rich media content to 50%, giving videos, 3D demonstrations, and AR/VR content significant ranking advantages. For example, an appliance repair platform increased its click-through rate by 36% by creating short videos addressing common problems. Companies need to invest in video production capabilities while optimizing text descriptions for AI crawling.
2. Localization and Voice Search: Untapped Potential in Contextual Traffic
“Nearby” searches have increased by 300%, with voice searches now accounting for 35% of all queries. With Baidu Maps deeply integrated into search functionality, local businesses can capture immediate-need traffic by optimizing location data and service tags. One flower retailer saw a 28% increase in search conversion rates after adding “Open Now” tags to their listing.
3. Data Loop Capabilities: From One-time Clicks to Sustainable Engagement
Baidu’s new “Merchant Rating” system improves conversion rates through content management and direct messaging capabilities. A legal services firm, for instance, developed over 1,000 expert articles on Baijiahao (Baidu’s content platform) and combined this with AI customer service to optimize consultations, reducing costs by 51%. Businesses should build a “search-private domain-service” loop rather than relying on single traffic sources.
4. Open-Source Collaborative Ecosystem: Low-Cost AI Integration
Open-source models like DeepSeek-R1 approach GPT-4 in performance, allowing companies to independently optimize and deploy AI solutions. Cross-industry giants like Huawei and OPPO have already built vertical search tools using open-source models. Small and medium enterprises can achieve precise customer targeting at lower costs by training specialized models with industry-specific data.
Industry Outlook
Baidu CEO Robin Li emphasized in earnings reports that “AI transformation is Baidu’s only path forward,” though commercialization speed still needs improvement. Gartner analysts predict that over the next three years, companies that successfully integrate AI tools with cross-platform data and contextual services will dominate the next wave of marketing competition.