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Jun22
EBay Continues, but Reduces Ad Spend on Google, Reaches out to Rivals

EBay (EBAY) is starting to put its ads on Google (GOOG) again, but is limiting their exposure to over reliance on them by increasing their business with other advertising services.

This is response to Google's attempt at drawing eBay's Paypal users over to their Google Checkout service, which had resulted in eBay pulling their ads from Google.

The decision will obviously hurt Google, as eBay is one of their biggest ad customers, and according to Hani Durzy an eBay spokesman, the company will reduce their keyword buys with the giant. The company had been buying millions in keywords from the company.

ebay%20reduces%20spenging%20on%20Google%2C%20reaches%20out%20to%20rivals.jpg"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 we're not as dependent on AdWords as some people thought."

From now on the company will extend its advertising campaigns to Google rivals AOL (TWX), Yahoo (YHOO), IAC/Interactive (IACI) and Microsoft (MSFT).
 
It'll be interesting to see the results from Google blinking on this deal, as they backed off from attempting to pressure eBay to include Google Checkout. It's one of the few times that a chink in Google's armor has been revealed.

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« Web Advertising, Access Spending will Grow by Double Digits to 2011 | Main | Yahoo! Makes First Post-Semel Acquisition »

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