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August 29, 2006
Google to Supply eBay Non-U.S. Ads

Google Inc. announced that it will become the exclusive text-based advertising provider for eBay outside the United States.

eBay and Google also 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.

Google has recently made several major partnerships this month such as their plans to test an ad-supported web video syndication system with Viacom Inc.'s MTV Networks. Google also struck a deal to supply ads to MySpace users and other News Corp. properties.

"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," says 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."

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. Skype will offer its users the option to download the Google Toolbar, to which Skype will add a custom button.

eBay bought Skype last year in a deal worth up to $4.2 billion.

"eBay is positioning itself well between Yahoo! Inc. and Google with the two respective partnerships. (Remember, Yahoo has a very strong Pacific Rim auction business that competes with eBay). This deal creates an even more competitive environment-- one that we believe will likely lead to an acquisition of eBay by Google. Google and MSN have locked up FaceBook and MySpace-- ad targeting on these sites represents the next generation type of ad targeting (behavioral and demographic)," Kelsey Group Analyst Matthew Booth told iMedia.

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