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eBay pulls US advertising from Google
15/06/07 – eBay have removed their US advertising from Google following a dispute over the search engine holding an event on the same evening as eBay's annual merchants' conference. eBay believe that Google scheduled the event in order to distract attention away from PayPal, eBay's payment system, and onto Google's own card processing service.The auction website is estimated to spend (£12.6m) a year on its Google advertising in the US and is potentially the biggest user of AdWords.
eBay spokesman Hani Durzy explained that the decision was not motivated solely by the move by Goggle saying: "This is part of an ongoing experiment to look at how we market across all media channels."
He did however admit that eBay had been disappointed by the search engine's actions.
"We don't view that kind of activity as an appropriate activity for one partner to do to another," he said.
Google's own payment service, Google Checkout, was launched in America last year and became available in the UK in April.
However the search engine giant has now cancelled its conference and issued a conciliatory statement on its blog: "After speaking with officials at eBay, we at Google agreed it was better for us not to feature this event during the eBay Live conference."
Industry experts to believe that eBay will return to advertising on Google but only after negotiations.
Ian Maude, analyst at media and telecom consultancy Enders Analysis, told the BBC: "It was a clever-dick marketing tactic from Google that has gone wrong.
"EBay is the dominant player in the online payments market with PayPal and they have reacted very badly to the stunt, feeling that Google is trying to park their tanks on their lawn."
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Published Date: 2007-06-15 16:40:08Subscribe to our RSS News feed:
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