Google and eBay Form International Alliance

Google will begin selling ads for eBay outside the United States in a move that's "all about speed" according to Google CEO Eric Schmidt.

Google will become the exclusive provider of text advertising on eBay outside the US and will utilize click-to-call, where a user can click on an ad and be connected by telephone through their computer or handheld device immediately. "We have a chance to create a whole new way for buyers and sellers to connect online and to create what we hope will be a significant revenue stream for both eBay and Google," eBay Inc. Chief Executive Meg Whitman said. Click-to-call also brings a significant increase in what search engines can charge - anywhere from $2 to more than $10 per call, compared with less than $1 for most pay-per-click ads.

It seems that eBay is hedging their bets, after agreeing to a deal with Yahoo for domestic advertising in May. The terms of the Google deal were not disclosed.