After its noteworthy debut on the Hong Kong stock exchange, Alibaba has announced plans to get into the ad business.

The Yahoo-invested Alibaba will launch an online ad exchange that connects advertisers with countless small and mid-sized Chinese websites and bloggers, reports the Financial Times.

Dubbed "Alimama," the exchange will take an eight percent commission from ad sales. It's reportedly signed 150,000 web publishers and 135,000 personal blogs since its beta release in August.

With pay-per-click models prone to abuse, Alibaba has said its most popular form of sales have been simple flat-fee purchases of ad space.

Alimama will go up against Baidu's advertising website alliance as well as a similar model launched by eBay, which aimed to monetize China's biggest websites.

Modeled after Google's AdSense, Baidu's offering takes a 15 percent commission from advertisers. Baidu also touts the number one search engine in China.

Check out "Related Stories" for more on China's booming online industry.