EBay signs ad deal with Chinese search engine

EBay Inc. signed an agreement with Baidu.com Inc. that allows China's biggest search engine to run advertising on EBay's Internet site in the Asian nation. Terms were not disclosed.

The two companies will begin testing Baidu's search-based advertising on EBay's China site in the first quarter of 2007, San Jose-based EBay said.

EBay's partnership with Baidu will enable the online retailer to tap a Chinese search market in which ad revenue may rise to $1.4 billion in 2011 from $194 million this year, according to Credit Suisse. Working with EBay may help Beijing-based Baidu win a bigger share of that market from rivals Google Inc. and Yahoo Inc.