Ebay and Google Agreements, announced a groundbreaking partnership linking
the online giants ‘ fortunes at a time When their strategies were increasingly
threatening to put them on a collision course.
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Ebay and Google Agreements
The alliance, which echoes a Yahoo – eBay agreement,
Will isolate Microsoft further at a time when software developers are seeking
partnerships of their own To speed up its initiatives on the Internet.
By creating a more complex network of dependencies among leading online firms,
The deal could also serve to dampen the industry’s mergers speculation that has
been widespread in recent months.
EBay said Google had contracted exclusively to provide text-based advertising for its
websites outside the United States, Echoing Yahoo’s previous agreement to carry
Yahoo advertising on its home market.
The companies also announced a “click – to – call” worldwide non – exclusive
advertising agreement under which their respective voice services will be carried as
Ebay’s Skype and Google Talk are shopping and searching pages for each other.
An online voice connection between a web user and advertiser is
created by click – to – call ads.
Concern that Google is expanding into online trade and payments have recently cast
a shadow over eBay and is frequently mentioned on Wall Street as one of the biggest
reasons why the online auction company’s shares have been underperforming over
the past months.
Google’s threat was also viewed as one of the main reasons for Ebay with Yahoo
alliance.
In that eBay, the two companies already have a close tie. together with Amazon.com,
one of the two largest keyword advertising buyers on Google’s search engine is
thought to be.
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Important ways of Ebay’s deal with Google
In at least two important ways, Ebay’s deal with Google stops short of its Yahoo
relationship. while Yahoo is supplying eBay with display and text advertising, Google
is not in the business of displaying, Even though it has said that at some stage it plans
to enter it. Yahoo has also agreed to carry PayPal, online payment service from Ebay,
on its sites, Google launched its own payment service recently.
The agreement to deliver ads to Ebay’s international websites is the latest in a series
of important Google partnerships, Following similar AOL and MySpace deals. these
deals were won before Microsoft, who seeks to gain wider distribution for their own
online advertising service, And that marked a Facebook alliance, a social networking
site.
The share price of Ebay has risen by 3 per cent, while Google was up 1 per cent.
