eBay & Skype — Reducing Friction of Commerce

Much has been written about eBay’s $2.6B acquisition of Skype. Fundamental to the deal, from what I hear, is eBay’s belief that presence-based advertising, by reducing commerce friction, will increase transactions and thus, obviously, revenues. I expect eBay will introduce presence-based ads with many of their properties including eBay Motors, Rent.com, Kijiji and others. And probably sooner rather than later. So eBay is betting, in a big way, on the value of presence-based advertising. I couldn’t agree more.

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