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Sunday, June 24, 2007

EBay Partly Resumes Paying for Google Ads

EBay was angry lately when Google attacked their PayPal system by trying to lure people away to use Google Checkout, and as result they stopped their ad spending for Google AdWords around 10 days ago. According to Reuters, they now resume the ads, but less so than before. An eBay spokesperson is quoted:

I will tell you it will be in a much more limited way than it was before ... What we found is that we were not as dependent on AdWords as some people thought.

According to the report, eBay now plans to rely more on “competing advertising systems from Yahoo, Microsoft’s MSN, Time Warner’s AOL, and IAC/InterActiveCorp’s”

EBay made their statement loud and clear, but despite all recent bluffing they still need Google for their business. Nick Denton of Valleywag compares the partnership of the two companies to a non-aggression pact between countries, which he says “never holds.” Google has been focusing on finding partners the last years, but the more they’ll expand their business, the more likely they’re to end up on rival grounds.

[Thanks Colin Colehour!]


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