Ebay has recently signed an advertisement deal with Baidu.com Inc., the biggest search engine in China. The recent deal will enable Baidu.com to run advertisements on the Asian internet websites of EBay. Both the companies have agreed to begin their testing on search-based advertising on the Chinese site of eBay somewhere in the first quarter next year.
The recent agreement with Baidu will give greater leverage to the online retailer giant to tap a huge and growing search market of China. According to speculations the ad revenue of the retailer giant may rise to $1.4 billion by the year 2011 in comparison with $194 million at present.
On the other hand, Baidu will be in advantageous position to grab a bigger share in the market from its competitors Google and Yahoo. Further, Baidu is also to promote the Chinese version of eBay’s PayPal online payment service.