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Ebay Pulls Ads from Google AdWords Network in USA

     
7:01 pm on Jun 13, 2007 (gmt 0)

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[news.yahoo.com...]

EBay has pulled all of its paid search ads from Google AdWords network in the U.S in an eyebrow-raising move likely to be interpreted in the industry as a sign of deteriorating relations between the two Internet giants.

Durzy characterized the decision to pull the U.S. Google ads as an instance in a continued experiment eBay does to determine the best allocation of its advertising and marketing budget.

But a source familiar with the situation said the move is an angry reaction by eBay's management to Google's decision to hold a protest party concurrent with the start of eBay Live, the company's annual conference for merchants.

Why does it matter? eBay was once the largest ad buying on all of Google.

10:52 pm on June 13, 2007 (gmt 0)

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>> Now, they looked so chicken

Or finally a big business that can admit when it's wrong at relative lightning speed. I'm with Google on this one; the only party that did anything wrong until the 'party' announcement was ebay.

G gives ebay the keys to the plex, ebay locks G out of the bay, G plans protest party, ebay pulls all US ads, G cancels tea party. In my eyes, ebay's the buffoon in this pissing match.

10:54 pm on June 13, 2007 (gmt 0)

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<conspiration theory>
I personally considered that subdomain spam and suspected G to ignore that because of the large budget...
</conspiration theory>

Nah, subdomains work for just about anybody with halfway, erm, authoritative sites.

10:59 pm on June 13, 2007 (gmt 0)

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I haven't seen other companies taking up 5 out of 10 results on the first page of search results with multiple subdomains featuring the same (already closed) products.

A company with enough PR and IBL "authority" status can spam the hell out of Google and get away with it.

11:02 pm on June 13, 2007 (gmt 0)

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>> I haven't seen other companies taking up 5 out of 10 results on the first page of search results with multiple subdomains featuring the same (already closed) products.

craigslist

11:42 pm on June 13, 2007 (gmt 0)

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eBay.com and eBay.co.uk ads are still showing in the UK, so I guess it's just a stand against Google in the USA.
12:09 am on June 14, 2007 (gmt 0)

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Google Retreating?

Google should have thought more about this party before they engaged. Now their doing a 180 because "eBay Live attendees have plenty of activities to keep them busy", right.

You do have to pick your battles in business but this looks like someone got pushed around.

12:24 am on June 14, 2007 (gmt 0)

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i recently got a four hundred dollar credit toward trying Google audio ads on radio. I do have some nice custom made spots but it seems Goog wants you to use their recommended sources - seemed like a lot of trouble to me.

and they have been trying to get me to try video ads too

i think i'll wait and let someone else be the guinea pig

[edited by: SlimKim at 12:25 am (utc) on June 14, 2007]

12:45 am on June 14, 2007 (gmt 0)

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Lots of businesses are on the same trend as ebay. Many merchants I'm speaking to are canceling or reducing their expenditure with Google and increasing it with Yahoo search marketing.
12:45 am on June 14, 2007 (gmt 0)

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It looks like G is taking it back:

Damn, gonna have to return those new dancing shoes now

12:45 am on June 14, 2007 (gmt 0)

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Bingo! - I was wondering why my earnings today were lower than usual. Guess there are people who click those eBay ads after all! Hopefully this spat will be over soon as I could use the $.
1:04 am on June 14, 2007 (gmt 0)

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No more new and used dog food.
1:23 am on June 14, 2007 (gmt 0)

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Lots of businesses are on the same trend as ebay. Many merchants I'm speaking to are canceling or reducing their expenditure with Google and increasing it with Yahoo search marketing.

What exactly is this comment based on? The move from the legacy Y! ad services to the new Panama is the biggest blunder I've seen recently. Google's AdWords is still the best interface hands down.

Regardless, it just looks like G did something silly thinking they were going to be cute, but it backfired and they put a stop to it before stuff started hitting the fan.

It would be silly of eBay to stay away from Google for good. This could very well be an attempt to strike a better deal with Google in exchange for allowing Google Checkout to be used on eBay.

1:27 am on June 14, 2007 (gmt 0)

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Without the ebay ads, Google will present a better search results page for a bit.

I don't see anything wrong with the party. Competitive companies through events all the time around other big conferences or gatherings. It's business. ebay is the monster that is restricting another form of payment. As a former powerseller, I view that as annoying. It should be up to sellers to do business how they want. Ebay is just a forum for people to get together and do independent transactions. If another big system is set up by the postal service, ups or a credit card company, will they ban that too? If Paypal had any kind of service or protection, people wouldn't want to go elsewhere.

Paypal did the same party thing before at ebay live and ebay wound up buying them down the road.

2:17 am on June 14, 2007 (gmt 0)

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paypal, an ebay comapny lunched/partnered with

paypal.thefind.com

wonder how it ties into this thread's discussion...(or ebay's strategy)

2:38 am on June 14, 2007 (gmt 0)

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Reliable word has it that Ebay spend on google last year was over 200m.
3:01 am on June 14, 2007 (gmt 0)

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^^ Any idea how much more on top of that was from eBay affiliates sending direct traffic?
3:04 am on June 14, 2007 (gmt 0)

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Just read this on TechCrunch [techcrunch.com]:

As I see it, Google is the one with the power since they can direct traffic anywhere they want. I like eBay and have used it for years, but compared to Google I don't think they have anywhere near the potential to influence the spend of millions of people like Google can. After all, it was eBay advertising on Google, not the other way around.

Does Google need eBay? I don't think so. Maybe a Google Auctions is in the works somewhere at the Plex - how would that sit with eBay? If eBay really wants to play hardball, they'd be wise not to underestimate Google. Tick tock.

[edited by: Play_Bach at 3:41 am (utc) on June 14, 2007]

3:11 am on June 14, 2007 (gmt 0)

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Will be interesting to see how their stock reacts.

That was my immediate thought when I saw this.

4:33 am on June 14, 2007 (gmt 0)

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According to Yahoo Finance, Google stock is up [finance.yahoo.com].
4:35 am on June 14, 2007 (gmt 0)

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Sheesh, I am sooooooooo happy about this.

There are many times I am searching for something and come across a google ad and check to see if any of them are relevant. As soon as I can tell it is an ebay ad, I just do not click it. They clog up relevant ads and in the end, bring down the entire experience.

In the adsense forum, many have complained about this for months. Honestly, this is the best thing to happen to adsense this year.

I shouldn't be too happy though, tomorrow I will probably start seeing:

"Find BUBONIC PLAGUE on Ubid" ads..

4:51 am on June 14, 2007 (gmt 0)

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I have since February 2005 Ebay in my AdSense filter list.

There ads had been much to annoying and reduced user experience on my site drastic.

5:22 am on June 14, 2007 (gmt 0)

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There's no way Google could possibly have cancelled that account from their end, even had they wanted to. Would it be outrageous to think that maybe, just maybe, Google deliberately made an attempt to provoke them into cancelling advertising on their end?

Has anyone thought of that? Or is that kind of thinking process only possible coming from a passive/aggressive female mind?

5:47 am on June 14, 2007 (gmt 0)

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According to Yahoo Finance, Google stock is up.

On anticipation of a greatly improved advertising experience increasing Google's market reach. ;)

5:54 am on June 14, 2007 (gmt 0)

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The more I think about this the more it seems like a dumb move on eBay's part. eBay advertises like crazy - on TV, radio, print and until today, all over Google. On the other hand, Google doesn't seem to have to advertise at all to maintain it's foremost position in the minds of the vast majority of surfers. So instead of eBay driving millions of eyeballs to their auctions today, they turned the lights out on them. Huh?

[edited by: Play_Bach at 5:56 am (utc) on June 14, 2007]

6:13 am on June 14, 2007 (gmt 0)

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After over a year of being content in insignificant positions, eBay just got more aggressive in our vertical starting yesterday - on Yahoo.

Is this "Plan B" in full effect?

8:29 am on June 14, 2007 (gmt 0)

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According to Yahoo Finance, Google stock is up.

The market must be confident that Google will roll out Google Auction and bite hard into eBay and Paypal's market share.

I for one would like to see Google come up with a service that will make Paypal obsolete. I have some money Paypal and it will not let me withdraw it in my country, bank wire to my country, or post a check to my country. (FYI, I'm in South East Asia). And there are so many other people who sold their stuff on eBay, and all their money is sitting in Paypal and cannot be withdrawn to be used.

Google could come up with Google Auctions, no sellers fees. The only catch is that Google will display ads on your selling page. Example, you sell used widget, and Google displays an Ad of new widget.

9:34 am on June 14, 2007 (gmt 0)

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It is important to take this in the context of what actually happened. A section of Google staff organised a party at the same time as eBay. This does not mean that Google Inc. heirarchy sanctioned this party. An individual wrote a blog message which may have been worded badly, and so it was retracted. Ok, so at the end of the day, Google is responsible for its employees, but we all make mistakes!

Also, both Google and eBay play an important role on the internet. Millions use them both every day, and there is room for them both. So, a squabble gets going, but they are both mature enough to sort this out, and reach a satisfactory conclusion for both parties.

Someone mentioned Googles stock is up, on Yahoo at least. How about eBays stock?

10:21 am on June 14, 2007 (gmt 0)

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This may well have a lot to do with the LPQ changes we saw over the weekend beginning to affect eBay's pricing. Google could well have increased eBay's minimum bids.
10:58 am on June 14, 2007 (gmt 0)

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From my perspective, both companies are acting out and need more Ritalin. If I had to take sides, it would be with Google, but only because eBay hasn't a clue about how to run a business and has become too expensive, clunky and watered down to use effectively. I used to spend over $200/month hawking goods on ebay; that is down to $0 today.

Google SHOULD take the fight to the next level and eliminate ebay auctions from their SERPs. They are nothing but spam. eBay would crumble like a stale cookie.

And, with the FTC likely not to be too keen on the idea of a Google/eBay or Goog/Yahoo merger, Google could just introduce their own auction system. They would not even have to do it for free. Ebay's fees are so ridiculously high, they'd likely be able to charge enough to be profitable in short order.

No insertion fee and 5% FVF sounds like a winner. Come on "do no evil" guys, it's time to take the fight to the losers at eBay.

11:12 am on June 14, 2007 (gmt 0)

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Google SHOULD take the fight to the next level and eliminate ebay auctions from their SERPs.

I always wondered how obscure expired auctions showed so high in the serps.

Ebay's fees are so ridiculously high

At least I know what ebays fees will be (for a while). Personally I would substitute google for ebay in that sentance...

[edited by: simey at 11:13 am (utc) on June 14, 2007]

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