Google to be exclusive seller of contextual advertising on non-US eBay sites

[mandy]

Yahoo and eBay formed an alliance earlier this year that named Yahoo as the exclusive provider of text-based contextual advertising on the US eBay.com site.  Now Google and eBay have formed an alliance that names Google as the exclusive provider of text-based contextual advertising on all eBay International sites.

In a deal between two of the Internet's most prominent properties, Google Inc. will begin selling advertising on Web auction leader eBay and help buyers quickly ring an online merchant to do business.

The arrangement announced Monday promises to introduce "click-to-call" Web site technology to a broader audience and potentially speed its adoption as a means to more quickly connect online consumers with advertisers. It allows potential buyers to call up sellers by clicking a link in a Web page.

"We have a chance to create a whole new way for buyers and sellers to connect online and to create what we hope will be a significant revenue stream for both eBay and Google," eBay Chief Executive Meg Whitman said in an interview Sunday night...

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.

The second component of the alliance calls for the two Silicon Valley companies to work together on developing a service that lets Web surfers place telephone calls through their computers or handheld devices when they click on a link in an Internet ad...

full article: http://www.sanluisobispo.com/mld/sanluis...379307.htm

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EDITED TO ADD MESSAGE FOR ANYONE WHO WAS PINNING THEIR HOPES ON GOOGLE EMERGING AS "AN ALTERNATIVE":  Don't rely on another company, be your own savior instead. Web sites are the alternative to (venue) subjugation.  

[mandy]

The press release:

Google and eBay Sign Multi-Year Agreement to Connect Users, Merchants, and Advertisers Around the Globe

Google Inc. and eBay Inc. today announced a multi-year agreement to benefit both companies' collective communities of users, merchants, and advertisers around the globe. 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 companies said the financial terms for certain components of the deal involve revenue sharing, but did not disclose specific details.

"We're pleased to expand our long-standing relationship with Google to explore new market opportunities, like click-to-call advertising, that benefit both our communities of users," said Meg Whitman, President and CEO, eBay Inc. "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."

"This agreement underscores how much we value eBay as a partner," said Eric Schmidt, CEO of Google. "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."

The companies plan to begin testing the text-based advertising and click-to-call initiatives in early 2007 that will be evaluated over a period of several months. The specific components and timing of implementation will depend upon initial test results, and will vary by market, largely driven by local dynamics and joint capabilities.

Details of the agreement include:

Search and Advertising on eBay Sites Outside the U.S.

Google will become the exclusive provider of text-based advertising on eBay outside the United States. This agreement provides Google advertisers access to one of the Internet's most robust online communities while enhancing the shopping experience for eBay buyers by making it easier for them to find the products they seek.

"Click-to-Call" Advertising and Technology Integration

Google and eBay 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 an emerging e-commerce model that brings buyers and sellers together by opening up new ways for advertisers and merchants to generate customer leads using the Internet. It is particularly valuable for merchants or advertisers who may not have a website, or who currently use channels such as local directories to reach potential customers.

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.

[mandy]

eBay announcement to members:

***eBay Agreement with Google*** 

August 28, 2006 | 03:11AM PST/PT


In an expansion of our ongoing relationship, eBay and Google have agreed to work together in ways that complement our companies' strengths. Google will become the exclusive provider of text-based advertising in search results on eBay sites outside the United States. eBay plans to continue its longstanding advertising relationship with Google and work closely to optimize its online campaigns to help shoppers find eBay listings.

In addition, Google and eBay will work together to deliver "click-to-call" advertising functionality on eBay and Google sites in the United States and around the world. "Click-to-call" functionality enables online consumers to initiate an Internet voice call to merchants or advertisers directly.

The companies will start testing initiatives of the agreement beginning in early 2007, after the 2006 holiday shopping period.

Another news story on the alliance:

EBay said that for international online text advertising it had agreed to rely exclusively on Google instead of existing partner Yahoo, which in May struck a parallel deal to handle all of eBay's U.S. ads...

Through its deal with Yahoo, Whitman said eBay had already begun testing ads that appear when U.S. customers fail to locate what they want on an eBay auction search.

The Google pact expands this to international sites.

If and when eBay sellers become more comfortable seeing ads alongside their listings, eBay plans to expand the number of pages where Yahoo or Google ads may appear, she said.

full article: http://news.com.com/Google+wins+eBays+no...g=nefd.top

[amy]

Bloggingstocks with 2 articles on the deal:

The deals highlight the weaknesses in eBay's auction and telecommunications businesses and are not likely to make much of a difference to Google's revenues.

Let's look at the implications for eBay first. eBay already has a search advertising deal with Yahoo! Inc. for its U.S. listings. When U.S. bidders can't find what they're looking for on an eBay auction search, they can use Yahoo search ads. Under the deal with Google, eBay sellers will be able to use Google search ads for non-U.S. searches.

I am not sure what percentage of bidders can't find what they want from an eBay auction search. But if that percentage is growing then it highlights a fundamental weakness of eBay's flagship business -- it is charging too much money for a service that is angering market participants. This is driving buyers and sellers to places like Google that are offering competing auction services. eBay might be better off trying to cure what is driving buyers and sellers away from its site.

The click to call deal highlights the challenge that eBay faces as it tries to make a return on its Skype acquisition. eBay appears to have overestimated the amount of revenue that Skype could generate...

full article: http://www.bloggingstocks.com/2006/08/28...t-nothing/

First, I think it's a good strategic move for both companies. This deal creates opportunities for both companies as "Web2.0" becomes even more tangled. While both companies did not promote any near-term financial benefit, the merging of interests does give further indication of how eBay intends to deploy its new Skype (costly) "asset" with it's concept of "click-to-call."

This will allow buyers and sellers to communicate immediately, perhaps allowing for better self-policing and processing of sale items.

Second, and more importantly, this deal shows that both firms see advantages in working together when mutual benefits can be derived -- even though they are competitors in many ways...

full article: http://ebay.bloggingstocks.com/2006/08/2...t-sun-tzu/

[BellisimaJ.]

If and when eBay sellers become more comfortable seeing ads alongside their listings, eBay plans to expand the number of pages where Yahoo or Google ads may appear, she said.

      As if sellers are ever going to be amenable to seeing the ads of  other sellers on the pages that  they have bought and paid for.  :

[amy]

I could name names of a few sellers who would not only cheer having other sellers ads on their listings but would also cheer if Meg took a dump on their heads.

[maryrussel]

eBay might be better off trying to cure what is driving buyers and sellers away from its site.

[BellisimaJ.]

[quote author=amy link=topic=4917.msg21763#msg21763 date=1156799233]
I could name names of a few sellers who would not only cheer having other sellers ads on their listings but would also cheer if Meg took a dump on their heads.


[/quote]



I shouldn't laugh, that is really pathetic!

[xppman]

[quote author=amy link=topic=4917.msg21763#msg21763 date=1156799233]
I could name names of a few sellers who would not only cheer having other sellers ads on their listings but would also cheer if Meg took a dump on their heads.


[/quote]

I think some r just into that shit  :

[regic]

The Google/eBay agreement includes two main parts –neither of which will appeal to eBay sellers.

1. Search and Advertising on eBay Sites Outside the U.S.
Google will provide text-based advertising (Google AdWords text ads) on eBay outside the United States. The agreement provides Google advertisers access to eBay and exposes eBay buyers to sources for the products they are seeking off of eBay.  What Brainiac at eBay agreed to this? 

The press release is long on concept and short on details.  If you read between the lines, I think this means that when a buyer performs a search on eBay (non-US sites) they will also get Google AdWords results across the top of the page in place of the text boxes you could formerly get from the eBay keywords program (cancelled last week by eBay).  eBay sellers will not like this!...

By killing off the eBay keywords program and replacing it with Yahoo and Google, this means that where I could formerly buy a top-performing keyword on eBay for ten or fifteen cents, I will now have to pay up to a dollar a click or even more to get my text ad...

full article: http://blog.skipmcgrath.com/public/item/140111