China's largest search engine Baidu.com is faring well, benefiting from vibrant growth in user traffic and advertising revenue.

The company generated 1.88 billion yuan ($295 million) in net profits for the third quarter of this year, skyrocketing 79.8 percent from a year ago. Its sales revenues stood at 4.18 billion yuan ($654.7 million), up 85.1 percent year on year.

Baidu currently controls 78 percent of China's search engine market, followed by Google's 17.2 percent, according to data from the Beijing-based research firm Analysys International.

Baidu is solidifying its market dominance thanks to increasing Internet advertising income. "Spending by large customers significantly outperformed our expectations," said Robin Li, Chairman and CEO of Baidu.

Its revenue from online marketing rose 85.1 percent to 4.17 billion yuan ($654.4 million).

"China's search industry is still in its early stages, and as the clear industry leader we see enormous room for continuing growth as users and online marketing customers become increasingly sophisticated," said Li.

"We enjoyed another strong quarter of top and bottom line growth, while maintaining a robust level of investment in development and research, infrastructure development and new strategic opportunities to support our future growth," said Jennifer Li, Baidu's CFO.

In the third quarter, Baidu completed the acquisition of Qunar, a leading travel search engine, and also made a $23 million cash injection into its online video site Qiyi.com.