ebay Teams Up with Yahoo for Advertising
EBay announced it will begin displaying new graphical advertising banners from Yahoo! as part of a search and advertising deal the two companies signed onto in May.
The new graphical campaign will be appearing on the right side of eBay’s Motors Home Page and the size of graphical advertisements on eBay.com search results pages will be increased.
UBS analyst Benjamin A. Schachter said eBay’s timing is in line with expectations, as eBay and Yahoo! (nasdaq: YHOO – news – people ) had announced they would start “testing” the new advertising partnership during the third quarter.
According to the agreement between the two companies, Yahoo! would be the exclusive provider of graphic ads on eBay’s auction site, while Yahoo! would use eBay’s PayPal online payment system when it sells its Web services to users.
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