eBay's Warning Shot To Google: We Can Take Our Ad Money Elsewhere
from the warning-signs dept
Over the last few years, there have been a number of questions about whether eBay and Google were on a collision path. The two appear to be in separate businesses, but there is definitely some overlap. At the same time, however, the two were partners. eBay has consistently been one of the biggest advertisers on Google. In fact, there were rumors that key reason that eBay bought Shopping.com was because Shopping.com's AdWords bids kept pushing eBay's AdWords bids higher. By taking out Shopping.com, eBay would then be able to spend a lot less money on Google ads.As the competition has become more direct, however, things may get particularly interesting. A year ago, Google announced its Google Checkout offering, which was somewhat competitive with eBay's PayPal (at least for merchants). This was worrisome enough that eBay banned Google checkout from its site. This past Monday, Google announced a somewhat childish plan to hold a protest meeting outside eBay's own conference. Apparently, eBay has responded in a big way: by removing all their US ads from Google. Publicly, eBay insists it's just an experiment with ad dollar allocation -- but many believe it's a direct response to Google's "protest." Considering how much money eBay puts into Google's bank account, this isn't a small deal. This is a warning shot from eBay to Google that becoming too directly competitive could mean that one of Google's top ad buyers will move somewhere else. If it's true and if eBay can really resist advertising through Google, this could have a huge impact on Google -- not just in the loss of so many ads, but also in driving down the cost auction price on ads where eBay has been an active bidder. This is a case where eBay may actually be in the power seat against Google and could cause Google a lot of pain. Update: As noted in the comments, Google has backed down and cancelled the protest. Looks like eBay has a bit of pull...
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
Google's Response
If Google can do one this right it is making existing products much better.
[ link to this | view in chronology ]
Re: Google's Response
competition good, I'm sure the software patent lawyers are starting to salivate...
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
You get charged to list an item
You get charged a percentage of what the item sells for
You get charged by using paypal
And you can't even talk to a human at ebay. You know why? Because they would be so overwhelmed by complaints. I wish I could take my business elsewhere but ebay is like Rich Uncle Pennybags from Monopoly and I'm sitting on Baltic Ave.
And what other site would ebay advertise on? AOL? Hahahaha! Okay, so my grandma would see the ads.
[ link to this | view in chronology ]
Re: Price
joe underwood
Area Code Shopper
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Google FTW
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Conflict of Interest?
[ link to this | view in chronology ]
Prices, why I quit selling on eBay
I really wish a company such as Google would compete in the Auction business. They would be huge immediately simply because of the traffic Google gets. Advertising via their own search engine and advertising programs would have them take a huge chunk out of eBay's market share almost immediately. Plus continue the free Google Checkout transactions for a while, lower the fees, innovate a little and offer more for less and eBay will look like an outdated dinosaur in the business.
[ link to this | view in chronology ]
uh...but where does ebay get traffic from?
[ link to this | view in chronology ]
what if google
not that i use-it, not that eBay hasn't got on their website a search engine, but still, this would be funny to watch :)
[ link to this | view in chronology ]
when was the last time you went to eBay via a goog
As someone who does neither, I can't see what the fuss is about.
[ link to this | view in chronology ]
Google take on ebay
[ link to this | view in chronology ]
My my, so many google fanboys.
Have any of you stopped to think what would happen (think "monopoly") if google actually buys out ebay? You think google is going to be any better? Or do you trust google more in the hope that there are humans at google whom you can actually call and talk to?
Grow up, kids. They are both large corporate entities whose aim is profit. You think google won't squeeze you and make you bleed if they had the chance?
[ link to this | view in chronology ]
Re: My my, so many google fanboys.
[ link to this | view in chronology ]
Pull ebay from the serps
[ link to this | view in chronology ]
Credit cards only on Google Checkout...
[ link to this | view in chronology ]
Google may succeed simply because the market has shifted to the point that eBay is loosing long time sellers due increased selling prices or poor/lack of customer service. People are looking for a new place to go, but there are almost no other options...
[ link to this | view in chronology ]
Yeah... My hobby is working on Muscle Cars.. lol
But in that - there's a lot of higher priced items and quantity that moves through Ebay in that world. But lately, I've read of case after case of Fraud that Ebay could just careless about.
No way I'm going to put down $700.00 for something and get stung. I'd rather just pay a Grand and be SURE I'm going to get what I'm paying for.
A guy on one of the car forums I hang out at, got stung by some guy for $650.00 for an Exhaust system, and Ebay acts like they could care less.
And PayPal... I won't even go into the issues I've had with them.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
eBay sucks
I pray that they one day go the same way that Enron has, or Global Crossing, even how Ford is doing now.
I have had more problems with eBay..... they have no real people, just robots and webforms. Brutal.
I can't convey how much I hate these guys..... I'd be 100% behind google if they were to give it a go. And I know a lot of others would as well......
Google is a giant, plus with youtube...... they can have a big impact can't they?
[ link to this | view in chronology ]
Thing about having a coke type of name is - you don't die. Unless you pour out your sweetness and fill it up with glass shards and horse shit for the people who keep your pocket lined. Oh thats right- that is exactly what ebay has been doing over and over year after year.
Google - To hell with their ad money. Come in treat your sellers right, use your uber technologies and put them out of the picture. About the only company that is right for taking it. No need to let them write you checks when you can just walk in their bank, stake your flag, beat your chest and cry in joy to the thought of these sob's finally and I mean fucking finally dying the death that they so deserve and their monopoly status has insured them from
[ link to this | view in chronology ]
Who needs Google
joe underwood
Area Code Shopper
[ link to this | view in chronology ]
Someone please start a new auction website
http://www.beyondsolutions.com/visualauction.html You can even buy auction software but sadly i'm not good enough wit all this computer business.
[ link to this | view in chronology ]