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eBay Puts the Kibosh on Google’s “Inappropriate” Party
A lot of people have been wondering why eBay won’t allow the Google checkout option to be used for eBay transactions; it would make the buying process much easier for a large group of buyers. Wouldn’t it be great if eBay stopped forcing people to sign-up for PayPal just to make a purchase. The buying process should be as easy for the customer as possible. Google’s been looking for opportunities to get this message to eBay, and what better way to get their attention than throwing a rival party the same weekend as eBay’s Seller Convention in Boston? Everyone knows Google’s are the only tech-giant parties worth checking out (so to say).
Coincidentally, says eBay, after the invitations were out, eBay pulled all of its ads on Google. In response, Google was forced to concede defeat in this round and cancel its party. This isn’t the first time toes have been stepped on, and probably won’t be the last. Things are getting tense as these companies expand their scope. It will be interesting to see how this relationship works out in the long run.
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June 15th, 2007
1:52 pm
I’m not a gamblin man, but I’d throw some money down on Google winning this battle. eBay coerces way too much money out of people with Paypal as it is. Google will still make money from eBay through the huge community of eBay affiliates who now have more room to pursue extra keywords with the sudden drop in competition.
June 18th, 2007
12:23 pm
Great comments Ron.. I agree with you completely.
June 20th, 2007
10:12 am
Curious what the ad budget is for eBay on Google. I would have thought that eBay pulling their ads would do more harm to eBay than to Google.
June 20th, 2007
10:57 am
From the New York Times article- “EBay spends less than $25 million on Google a quarter, said Jordan Rohan, an analyst with RBC Capital Markets, or only a tiny fraction of Google’s nearly $3.7 billion in revenue in the latest quarter.” So I don’t think this will be too much trouble for Google, eBay will likely reconsider their position in this matter.
June 20th, 2007
11:29 am
Daniel – Thanks for the info. That is a good sum of money even to Google, but eBay pulling their ads would most certainly have negative consequences on them, don’t you think?
On another note, I see that in your blog users who comment can subscribe to the entry and also manage their own subscriptions. The subscription manager looks like Wordpress? Is this a plug-in? I use Wordpress but do not have that functionality. Would love to know where and how to get it.
June 20th, 2007
11:47 am
Yes, your right it is word press and it is a plug in, its called subscribe to comments. heres a link to the download, hope it helps. http://txfx.net/code/wordpress/subscribe-to-comments/
June 21st, 2007
1:50 am
Interesting thing is that eBay Live ended last Saturday and it appears the eBay’s ads are still not on at Google.
The other interesting thing is that Google doesn’t only suffer the revenue loss of eBay’s ads but also the decreased competition on all keywords eBay buys (and that is a lot of terms). Because the ads are in an auction format when a high bidder withdraws everyone else bidding on those terms gets lower cost clicks. So all the remaining advertisesrs could potentially be paying Google less for their clicks than if eBay had their aggressive bid in too.
June 22nd, 2007
12:13 am
For anyone in the auto industry here is a discussion thread of this topic on DealerRefresh where a lot of Internet Sales Managers and other industry folk are commenting.
April 20th, 2008
9:45 am
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