Google and eBay strike advertising alliance
Monday, 28 August 2006Internet giant Google and online auctioneer eBay said today that they had struck an alliance to boost their text-based and 'click-to-call' advertising revenues.
Under the deal, Google advertisers will be promoted on eBay's auction websites around the world as the two companies seek to increase online commerce through the use of emerging Internet telephony services.
The companies did not disclose any financial terms of the deal, but said in a joint statement that some parts of the alliance would involve revenue sharing.
'We're pleased to expand our long-standing relationship with Google to explore new opportunities, like click-to-call advertising, that benefit both our communities of users,' said eBay CEO Meg Whitman.
Google will become the exclusive text-based advertising provider for eBay outside the US as a result of the accord.
In 'click-to-call' advertising, a user clicks on a link or icon on their screen to initiate an Internet voice call to an online vendor. Since buying Internet telephony service Skype last year, eBay has integrated Internet calling features into its auction sites in several countries including Belgium, China, Switzerland and the Netherlands.
The new tie-up will rely upon using Skype and Google Talk globally on both companies' search and shopping platforms.
The companies plan to start testing the advertising services in early 2007. A full launch of the services will depend upon initial test results and vary market by market.
Ebay said it does not expect the accord to have a material impact on its financial results in 2006 and 2007.
