The increased use of smartphones has attracted advertisers

Baidu expects revenue from 1.422 billion to 1.46 billion dollars in the quarter to exceed Wall Street's $1.35 billion trillion forecast.

The company's rival, Qihoo 360, runs China's most popular app store and has eaten up a lot of Baidu's share since last year's foray into the search engine market. Qihoo 360 also increases the cost of marketing spending and traffic acquisition.

Qihoo 360 now occupies 15% of China's market share, and is purchasing Sohu's search engine Sogou. If they merge, they will take about one-fourth per cent of the Chinese search market.

Baidu in the second quarter to achieve revenue of 1.23 billion U.S. dollars, analysts on average expected the company when the revenue closed to 1.2 billion U.S. dollars. Sales grew 38.3% to $1.228 billion in the second quarter. The stock was reported to have closed at $113.37 in conventional trading in the Nasdaq market in Wednesday, up 3.2% per cent, while trading after a 17% gain.

Baidu in the second quarter to achieve net profit of 2.64 billion yuan (about 431 million U.S. dollars), compared with the same period last year, 2.77 billion yuan decline 4.5%, in line with analysts 2.6 billion yuan average expectations.

Baidu also agreed this month to buy 51 wireless, the third-party smartphone app Store, to become the largest acquisition in the company's history. The company is trying to adapt to the shift trend.

"There has been an improvement in second-quarter advertising as smartphone users have increased," Ki Rai Ricky Lai, Guotai Securities analyst. As people spend more time on the Internet, traffic is also significantly improved. ”

According to the China Internet Network Information Center, the number of Chinese Internet users accessing the Internet through mobile devices increased by 10% to 464 million in the end of December last year.