Ebay Pulls Ads from Google AdWords Network in USA

[Brett_Tabke]

[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.

[poster_boy]

CL must be wreaking havoc on the eBay business.

I would have to agree, but eBay is a Craigslist stakeholder (they purchased a 25% stake in 2004) - however that'll evolve...or has evolved since, I'm unsure.

Clickz article [clickz.com]

[irish_john]

Looks like Ebay are doing a week only experiment. Ebay Ads will be back.

[Rugles]

It is a long thread so forgive me if this was discussed.

Now that Ebay has taken away 200M from Adwords. If I was bidding on keywords that Ebay was, and now that they have stopped.

Can I assume that I will now save a little bit of money and get higher placement? Assuming that everything else remains equal of course.

[Brett_Tabke]

Media Post search insider is reporting that Ebay is spending an average of $26 million a month in 2007 on AdWords. That puts it on track to spend $325 milion this year. That's big big big bucks. There will be some seriously hurting Adsense sites out there. Adwords will continue to rock of course, but there are alot of as sites living off ebay ads.

[Rugles]

I am not concerned about the Adsense part of it. Just the effect it will have on advertisers and if it will bring down the cpc. If you were competing with Ebay for any keywords of course.

[shorebreak]

Our firm manages < a lot of PPC >, and our AdWords data models are showing a 3-4% decline in Google retail CPC's. Don't expect that to last long, however, as advertisers will quickly pick up EBay's slack. My estimate is that Google sees at most a 0.25-0.5% decline in revs this quarter as a result, and no more.

The whole thing is overblown - there will be no effect on Google.

-Shorebreak

[edited by: tedster at 2:38 am (utc) on June 20, 2007]

[toddb]

How can there be no effect? Ebay is the largest advertiser they have even if it is only 2%. No one wants to lose their biggest customer. The vast amount of garbage ads that ebay had is going to impact the sales level as others probably won't take those spots.

[corbing]

And they are back....

EBay Returns to Google Advertising
[biz.yahoo.com...]

[encyclo]

Continues here:

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