eBay & Yahoo : Yahoo Search Marketing Ads on eBay
Yahoo and eBay announced that they have entered into a multiyear partnership today which will fortify the offerings of one another, growing Yahoo Search Marketing via expansion on eBay and eBay’s PayPal online ‘banking’ and payment system via Yahoo integration. This partnership will expand Yahoo’s sponsored search advertising across the eBay.com site as Yahoo will become the exclusive third party advertiser on eBay and Yahoo Search Marketing ads will be integrated throughout the eBay network; possibly including Yahoo Publisher Network type ads as well.
Yahoo! will become the exclusive third-party provider of all graphical advertisements throughout the eBay.com site, and sponsored search for complementary products on some eBay.com search results pages in the U.S. Yahoo! already provides a broad and deep array of essential services to an extremely engaged audience around the world. Through this partnership, Yahoo! can expand upon these strengths with the addition of eBay.com’s high quality online inventory, offering advertising clients an optimal marketing experience.
Yahoo! and eBay have also agreed to collaborate on ways to increase the quality and comprehensiveness of Yahoo! Web search results for eBay.com and to provide Yahoo! search users with more up-to-date listings from the millions of products on the eBay.com marketplace, with the goal to create a better search experience by enabling shoppers to more easily find relevant eBay listings.
Ina Steiner of AuctionBytes looks into what this means for eBay sellers as the Yahoo ads on eBay will bring more competition:
Let’s say I list an iPod on eBay for $19.95 and make it a featured listing. I’d be paying eBay 60 cents in listing fees and $19.95 for the Featured Plus upgrade so my listing will stand out on the search results pages. Imagine how I feel if right next to my featured listing is an ad for an iPod from a Yahoo Search Marketing advertiser that draws people away from the eBay.com website.
Remember, if the shopper chooses to purchase the iPod from the Yahoo advertiser, eBay gets nothing more. If they buy my iPod, eBay gets a Final Value Fee from me.
Yahoo understands perfectly the value of auction listings as a platform for serving up its paid-search product. One year ago, it eliminated fees on its own auction platform and serves up its paid-search advertisements on Yahoo Auction search results. It must be jumping up and down at the thought of putting its ads on eBay.com. This is an incredibly lucrative deal for Yahoo.