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Yahoo and eBay Combine Forces to Thwart Google

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He has: 257 posts

Joined: Mar 2003

On May 25, Yahoo and eBay set up a joint venture to combine some of their major services:

Under the terms of the agreement, Yahoo will get the right to use PayPal, eBay's popular electronic payment system, and Skype, eBay's free VoIP service.

In turn, Yahoo becomes the exclusive third-party provider of graphical ads for eBay's Web site, and will also supply sponsored search results for some eBay.com auction offerings. And the eBay browser toolbar, which has been downloaded by roughly 4 million eBay users, will soon include access to Yahoo search, mail and other Yahoo sites.

...the deal has the potential to benefit both companies by better monetizing eBay's traffic and providing some incremental revenue to Yahoo in terms of ad distribution. It will also give a small potential boost to Yahoo search usage. And Yahoo is also reportedly going to push PayPal as the payment system of choice to its small business web hosting clients.

Spokespeople from both companies also said they will be developing services that combine their technologies. One joint project that has been discussed is click-to-call advertising. This would allow people to click on advertisements on eBay and Yahoo sites and be connected to the advertiser through either eBay's Skype or the voice calling feature of Yahoo Messenger.

brady.k's picture

He has: 1,383 posts

Joined: Feb 2002

Ugh, just when Google was starting to totally dominate the ad market.

JeevesBond's picture
Moderator

He has: 3,523 posts

Joined: Jun 2002

Thanks for the article Roy. Have to admit that their attempts merely sound spammy and not very effective.

Anything that increases the competition would be a good thing though! Smiling

a Padded Cell our articles site!

He has: 257 posts

Joined: Mar 2003

Anything that increases the competition would be a good thing though!

It will be interesting to see if a real rivalry begins;i.e.,if Yahoo/eBay starts taking business away from Google.