UPDATE 3-Baidu sees new ad system boosting Q3 sales
* Q3 sales seen $184 mln to $189 mln vs Street's $179 mln
* Q2 adjusted EPS $1.71 vs Street's $1.56
* Q2 revenue $161 mln vs Street's $158 million
* Shares down 2.3 percent in after-hours trade (Adds detail from earnings call, bylines, SHANGHAI dateline)
By Alexei Oreskovic and Melanie Lee
SAN FRANCISCO/SHANGHAI, July 23 (Reuters) - Chinese Internet search leader Baidu Inc (BIDU.O: Cotización) expects sales to grow faster than market forecasts in the third quarter, helped by rising customer acceptance of its new advertising system.
Already, the roll out of the advertisement keyword bidding system -- Phoenix Nest, similar to Google Inc's (GOOG.O: Cotización) AdWords -- played a part in Baidu's better-than-expected second-quarter revenue growth of 37 percent, along with China's rapidly growing number of Internet users.
For the third quarter, Baidu projected sales of $184 million to $189 million, compared with the average analyst estimate of $178.9 million.
"We expect the benefits of Phoenix Nest to ramp up in the quarter to come, in terms of enhanced monetisation and as well as improved ad relevancy," Chief Executive Robin Li told a conference call. Continuación...