Yahoo, eBay Partnership Helps Search Advertisers

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The advertising and search partnership formed by Yahoo and eBay will affect search advertisers and help both companies compete against Google and other search engines.

Shares in both companies rose after the May 25 announcement that Yahoo and eBay signed a multiyear partnership on several areas, including search and advertising, a co-branded toolbar, online payments via PayPal and the exploration of a "click-to-call" function.

The partnership will help Yahoo compete against search engines' increasing focus on e-commerce and online classifieds, including Google Base, where people can post items for sale at no charge.

Yahoo will be the exclusive third-party provider of all graphical ads on eBay sites and the sponsored search provider for complementary products on some eBay search results pages in the United States. EBay had handled its advertising and search program in-house.

"The biggest component is that we are now ... going to provide eBay all of their graphical advertising as well as their sponsored search advertising, which is a huge benefit to our advertisers," said Kelly Delaney, a spokeswoman for Yahoo.

Yahoo and eBay also agreed to collaborate on ways to improve the quality of Yahoo Web search results for eBay.com and provide Yahoo search users with listings from eBay.com.

While Yahoo previously ran its Yahoo Wallet in-house, the engine said it now would use PayPal to power it, which will affect Yahoo's e-commerce sites. PayPal will be promoted as Yahoo's payment solution for the Yahoo Publisher Network, Yahoo Search Marketing and Yahoo Merchant Solutions.

In the companies' co-branded search toolbar, Yahoo Mail, Yahoo's home page and other features will be integrated into eBay's toolbar.

In addition, the companies said they will explore click-to-call ad technologies that could be used on both sites.

Yahoo and eBay will begin testing the programs this summer and expect to implement them in 2007.

The advertising and search partnership formed by Yahoo and eBay will affect search advertisers and help both companies compete against Google and other search engines.

Shares in both companies rose after the May 25 announcement that Yahoo and eBay signed a multiyear partnership on several areas, including search and advertising, a co-branded toolbar, online payments via PayPal and the exploration of a "click-to-call" function.

The partnership will help Yahoo compete against search engines' increasing focus on e-commerce and online classifieds, including Google Base, where people can post items for sale at no charge.

Yahoo will be the exclusive third-party provider of all graphical ads on eBay sites and the sponsored search provider for complementary products on some eBay search results pages in the United States. EBay had handled its advertising and search program in-house.

"The biggest component is that we are now ... going to provide eBay all of their graphical advertising as well as their sponsored search advertising, which is a huge benefit to our advertisers," said Kelly Delaney, a spokeswoman for Yahoo.

Yahoo and eBay also agreed to collaborate on ways to improve the quality of Yahoo Web search results for eBay.com and provide Yahoo search users with listings from eBay.com.

While Yahoo previously ran its Yahoo Wallet in-house, the engine said it now would use PayPal to power it, which will affect Yahoo's e-commerce sites. PayPal will be promoted as Yahoo's payment solution for the Yahoo Publisher Network, Yahoo Search Marketing and Yahoo Merchant Solutions.

In the companies' co-branded search toolbar, Yahoo Mail, Yahoo's home page and other features will be integrated into eBay's toolbar.

In addition, the companies said they will explore click-to-call ad technologies that could be used on both sites.

Yahoo and eBay will begin testing the programs this summer and expect to implement them in 2007.

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