EBay Advertises On Google Again After Search Engine Cancels Party Plans Near Auction Site’s Annual User Conference

EBay and Google are working together again after the auction site pulled all of their ads from the search engine. The disagreement between the two companies began when Google planned a party to coincide with eBay’s annual user celebration in Boston.

EBay began to transfer advertising dollars from Google to competitors including Microsoft, Yahoo! and Ask and AOL. According to eBay this proved that they were not as dependant on Google. Calling the move an experiment, eBay spokesman Hani Durzy said"We weren't as dependent on AdWords as some out there may have thought."

Although eBay did not provide dollar figures or any percentages, they didn’t spend as much on Google. "Other partners - Yahoo and AOL and MSN - really stepped up and provided a lot of value," Durzy said. "And natural search continues to drive a lot of valuable traffic to the site."

The problems began when Google planned a party for their competing payment system called “Google Checkout” to be held near the conference hall booked by eBay for their annual event. EBay has relied heavily on their credit card acceptance program called “Paypal” since revenue has been dropping on their auction site.

Back in 2002 eBay purchased Paypal and scrapped their previous payment program. Recently Google introduced their own competing payment program that allows sellers to accept credit cards without signing up for a merchant account.

Since eBay pulled their advertising 10 days ago, Google has cancelled their party. Although eBay says they will continue to advertise on Google, they will also rely heavily on other search advertising programs. Advertisements on Google help drive traffic to the products for sale on eBay.

The conflict did not hurt either company’s business. Although there was a sell off in U.S. stocks last week, both Google and eBay rose on NASDAQ. EBay was up 2.2 percent at $31.81 while Google added 1.5 percent to $521.77 per share. Yahoo was down 0.8 percent at $27.45.

By Steven Potter - Best Syndication News Business Writer

eBay Selling

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EBay Advertises On Google Again After Search Engine Cancels Party Plans Near Auction Site’s Annual User Conference