Google, eBay form multiyear partnership

By Anna Molin, Bay City News Service

August 29, 2006

Internet giants Google and eBay Monday announced a multi-year partnership that gives Google monopoly on providing text-based advertising on eBay's non-U.S. Web sites while also integrating "click-to-cal'' advertising on the companies' U.S. and international shopping and search platforms.

Just a few months ago, eBay, the world's largest online marketplace, signed a similar text and graphic-based advertising sales agreement with one of Google's main search engine competitors, Yahoo, for eBay's domestic Web sites.

That agreement also involved "click-to-call" advertising, where users click on an ad's link or icon to call merchants or advertisers over the Internet using Yahoo's Messenger with Voice, eBay's Skype or Google's Google Talk services.

"This agreement underscores how much we value eBay as a partner," Google's Chief Executive Officer Eric Schmidt said in a statement released Monday. "Our technologies will allow us to connect users to relevant advertising across eBay's international properties. By working together to promote click-to-call functionality through Google Talk and Skype, we are offering advertisers another innovative way to connect with customers."

Months of testing for both initiatives are expected to begin in early 2007, after which implementation would start depending upon the test results.

Under way is also a Skype user option to download a Google toolbar that will feature a button from Skype.

"People continue to evolve how they shop, communicate and advertise online," eBay's President and Chief Executive Officer Meg Whitman said in a statement. "By combining the power of eBay in e-commerce and Skype in communications with Google's leadership in search and advertising, we can increase the usefulness of the Internet for shoppers, merchants and advertisers around the world."

The companies will reportedly share revenue for certain components of the deal, although details were not provided.

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