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June 13, 2007

eBay Yanks Google Ads Because of Google Checkout eBay Live Party?

According to Scot Wingo, CEO of Channeladvisor and author of eBay Strategies (and I just comfirmed by checking a handful of keywords as well), eBay has pulled their Adwords advertising from Google. Apparently this is due to a Google Checkout Party being held at eBay Live.

Here is a snip from Scot's post:

The big question - in this battle who is hurt worse?  Google or eBay.  I'm going to go with eBay, they are much more reliant on that quality google traffic than Google is on eBay's ad spend.  Sure, eBay is a top advertiser, but other advertisers will 'fill-in' so the net loss to Google is substantially lower than eBay probably anticipates...

...(ebay traffic starting June 13 drops by 20-40%)

For those of you who don't know, I was once a high flying eBay PowerSeller.  I had a warehouse, (I guess I  have a warehouse since I still pay for it), 4 employees and one of the fastest growing small businesses in the State of Washington. Then eBay lost their mind.  While the site traffic was taking a 50% dip, they decided to more than double the fees over an 18 month time frame.

eBay can not afford to lose the traffic that Google adwords provides them so I suspect that this won't last long.

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Ebay Strategies

This blog is specially related to ebay strategies between Google and Ebay. In my view ebay is better than google in many ways. I'm going to go with eBay, they are much more reliant on that quality google traffic than Google is on eBay's ad spend. Sure, eBay is a top advertiser, but other advertisers will 'fill-in' so the net loss to Google is substantially lower than eBay probably anticipates.

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