Google to join hands with eBay

The Mountain View based Internet giant Google is all set to join hands with web auctioneer eBay Inc. to allow users to talk to advertisers with the help of Skype internet phone service, instead of just clicking through to the advertisers’ Web sites.

Google will begin advertising for Web auctioneer eBay outside the United States and help buyers quickly ring an online merchant to do business. According to the deal, eBay and Google will work together to develop ‘click-to-call’ ads which would allow customers to talk directly to merchants via Google Talk or eBay's Skype Internet phone service.

EBay, with this new partnership with Google is hoping to make some good money from Skype, but it will require people to start talking through their computers instead of using the traditional phones.

According to Alex Kazim, the president of Skype, an increasing number of computers now come with microphones, and consumers are increasingly using them.

“We see a shift over time as users become more and more able to do voice calling on their PC’s,” Mr. Kazim said. He also pointed out that Skype had 100 million users worldwide.

In order to get directly linked to the customers who are ready to buy, companies would willingly pay more for these ads. Several companies conducted some tests which indicate that there is a group of advertisers, including mortgage brokers, who are willing to pay $8 to $15 for each call from a Web searcher. This will be roughly 10 times more than they will pay for a Web site click.

“By combining the power of eBay in e-commerce 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,” eBay Chief Executive Meg Whitman said in a statement.

In early 2007 this service will be rolled out to consumers outside the United States. Google’s shares were raised $7.69 yesterday, to close at $380.95, while eBay’s shares went up 49 cents, to $25.79.