Internet portal Yahoo and online auction giant eBay today announced a partnership for advertising and online payments.
Under the deal, Yahoo will become the exclusive third-party provider of graphical advertising on eBay's site and eBay's PayPal will become the exclusive payment system on Yahoo's sites.
The companies also agreed to a co-branded version of eBay's toolbar, which will include links to Yahoo's search and mail functions. The two companies will also develop 'click-to-call' advertising technologies, in which consumers can use a link included inside an advertisement to directly call that advertiser.
'Our consumers will benefit from the combination of Yahoo and eBay's leading technology and services, providing them with one of the best online experiences,' said Terry Semel, Yahoo's chairman and CEO.
The move is likely to help the two Internet giants compete against Google, which has become the leader in web search and a major force in online advertising linked to search terms.
