June 15, 2007 6:52 PM
The Biggest Internet Maketing Divorce
Ebay used to be one of Google’s biggest advertisers. But due to a planned party to be hosted by Google’s Checkout system, a payment service tool that directly competes with Ebay’s own payment system, PayPal, Ebay decided to pull off all Ebay advertisements that appear on Google search results. And so begins, one of the year’s biggest internet marketing separation.
Market analysts are now speculating on which side the effect of the separation would be felt more. Will it be on Google who has tons and tons of advertisers on its payroll? Or will it be on Ebay who has tons and tons of advertisers on its side?
For Google, yes the company might have more than enough advertisers to fuel up its advertising earnings but a client is still a client. And on the business side of view, it still is a loss income.
From Ebay’s side, the fact that it does not even have a clear figure on how much traffic Google ads drives towards their site and how much of this traffic results to conversion and actual transactions, could simply mean that it can afford to lose its ties with Google.
As it is, both parties stand a chance of losing from this controversy. And the sooner they resolve this issue, the better for the internet marketing industry.
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