eBay and Google: Kiss and Makeup
After canceling all Google ads in protest 10 days ago, eBay said it will resume service with the Google, but will rely more on rivals. The online auction leader said Friday that it intends to resume placing Web advertising on the Internet search giant. Now eBay plans to bank to a greater degree of competing advertising systems from Yahoo, Microsoft's MSN, Time Warner's AOL, and IAC/InterActiveCorp's Ask.com.
The intensifying rivalry between the two companies' payment services spilled over at eBay's annual conference for key merchants last week in Boston when eBay protested Google's plans to hold a competing party outside the conference hall. Google was seeking to put pressure on eBay to accept its system on ebay auction sites. In response, eBay moved to eliminate all U.S. advertising on Google-affiliated sites. Amid the controversy, Web search company terminated its own promotional event.
eBay is one of the biggest purchasers of keyword ads on AdWords, Google's leading pay-per-click advertising system. Hani Durzy, a spokesman for San Jose, California-based eBay, said his company later on Friday would begin advertising on Google, but at reduced levels than previously. eBay had been buying tens of millions of keyword ads on Google each year. "I will tell you it will be in a much more limited way than it was before," Durzy told Reuters. "What we found is that we were not as dependent on AdWords as some people thought."
eBay owns PayPal, which, with 143 million accounts, is the world's most popular online payment service among merchants and consumers. Last year, the Web search company introduced an alternative payment system called Google Checkout and has been seeking to woo eBay merchants to try its alternative offers.
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