Google, eBay form advertising alliance

   Date:2006/12/31
Google Inc. and eBay Inc. have entered into an agreement involving text-based advertising and "click-to-call" advertising functionality, the companies said on Aug 28.

Under the partnership, Google would become the exclusive provider of text advertising on eBay outside the United States. In May, eBay announced a deal with the No. 2 Internet search engine, Yahoo Inc., to serve all its domestic advertising.

In addition, the companies also plan to integrate and launch "click-to-call" advertising functionality within eBay's U.S. and international marketplaces and Google's search platform.

The click-to-call capability will allow a user to click on a link or icon within a product or service advertisement to initiate an Internet voice call to participating eBay merchants or Google advertisers directly from either company's respective sites, using Skype or Google Talk.

Click-to-call advertising is aimed at those merchants or advertisers who may not have a website, or who currently use channels such as local directories to reach potential customers.

The eBay contract is part of a string of deals this month for Google. It previously said it planned to begin testing an ad-supported Web video syndication system with Viacom's MTV Networks. It also struck a deal to supply ads to MySpace users and other Web properties of News Corp..

Financial terms for components of the deal involve revenue sharing, but the companies did not disclose specific details. EBay said it did not expect the Google agreement to have a material impact on its financial results in 2006 or 2007.

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