Yahoo, eBay Team Up to Boost Search, Ads

Yahoo and eBay on Thursday said they will team up to enhance their Web search, online advertising and Web payment services, as well as offer a new toolbar, in an effort to better position the two Internet giants for competition with uber search firm Google, The Wall Street Journal reports.

Google extended its lead in the search market in April for the ninth consecutive month, while its closest competitors, including Yahoo, lost market share, according to research released on Monday by comScore Networks. Read Google Grows Search Engine Lead for more.

The two companies said they’ll roll out the initiative in late 2006, and they’ll begin a test phase over the coming months, according to the Journal.

As part of the deal, Yahoo will exclusively provide all graphical advertisements and “sponsored search ads” on the eBay website, and together the companies plan to develop “click-to-call” ad technology that will enable Web surfers to click on ads to be connected to live operators, according to the Journal.

Sunnyvale, Calif.-based Yahoo and San Jose’s eBay will also tweak the way Yahoo’s search picks up eBay auction postings, and eBay’s PayPal Web payment service will become the main payment option for Yahoo customers who pay fees online via credit or debit cards, the Journal reports.

Just yesterday, Yahoo also announced a partnership with iBasis, a VoIP provider, to offer international VoIP. For more, read Yahoo, iBasis Team Up for International VoIP.

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