In a bid to challenge Google’s market dominance, Yahoo! and eBay have announced that they have forged an advertising alliance. Yahoo! will be allowed to sell advertising on eBay while using PayPal to service the payments. While it sounds like a power play, neither party reaps large benefits from the union. eBay will receive new ways to generate money, but they still do not address the rise in competition such as Google’s Base and even Yahoo!’s own auction service. Yahoo! will gain a potentially huge expansion for its advertising business, however they just lost their largest single partner, MSN, when they decided to sell their own advertising.
Meanwhile, in the other camp, Google has announced a new alliance with computer make Dell. All Dell computers will ship with Google software already installed on them. The software includes several personal computer applications, a Google toolbar and a co-branded homepage. This move allows Google to directly challenge Microsoft’s software dominance.