Taobao is the market leading C2C auction platform in China and Alimama is an online advertising network. The merger comes as part of Alibaba’s plan to begin charging fees to Taobao users in October. Taobao has been a free service since it was launched in 2003. The company claims that US$44 million worth of merchandise is traded on its platform each day and they claim to have 80 million registered users.  Alimama works with 400,000 small- and medium-sized websites in China. Alimama competes with other ad networks operated by Baidu and Google.  Source:

BIIA Newsletter September 2008