Google Inc. and eBay Inc. have signed a multi-year agreement...
Google Inc. and eBay Inc. have signed a multi-year agreement...
Published: 28 Aug 2006
Google Inc. and eBay Inc. have signed a multi-year agreement...
Google Inc. and eBay Inc. have signed a multi-year agreement for leveraging both companies’ collective communities of users, merchants and advertisers.
The agreement consists of two primary components involving text-based advertising and “click-to-call” advertising functionality.
Specifically, Google will become the exclusive text-based advertising provider for eBay outside the United States. In addition, eBay and Google plan to integrate and launch “click-to-call” advertising functionality that leverage both Skype and Google Talk globally in each company’s respective shopping and search platforms.
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.
Eric Schmidt, chief executive officer, Google said technology will allow the company 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,” said Schmidt.
The companies said the financial terms for certain components of the deal involve revenue sharing, but did not disclose specific details.
Meg Whitman, president and chief executive officer, eBay Inc, said, “People continue to evolve how they shop, communicate and advertise online. By combining the power of eBay in ecommerce 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.”
Starting in the near future, Skype will offer its users the option to download the Google Toolbar, to which Skype will add a custom button. The companies will also explore interoperability between Skype and Google Talk via open standards to enable text chat and online presence.
At this time, eBay does not expect this agreement will have a material impact on its financial results in 2006 or 2007.