eBay ends relations with Google and is no longer AdWords Advertiser

Google Checkout vs eBay - Round OneThe big scandal between Google and eBay proved to be fatal as the two giants were not able to agree on the use of Google Checkout as alternative payment method on eBay. Google tried to push eBay in adding the option for Google Checkout Payments, but eBay insisted on their Paypal Monopoly. In protest Google organized large event called The User Freedom Party, in the same time and place where eBay is organizing its annual conference for Merchants and Developers in Boston, and advertised with the message that everyone can join them for free food and drinks at their party to protest against eBay. In response eBay pulled out all its ads from the Google Advertising Network – AdWords.

This event was somehow expected because everyone know that eBay is earning some good money as Paypal fees and sharing it with Google will make them loose quite a lot of money. The eBay management claimed that they will be able to survive it without Google’s help and this alternative business strategy is part of larger marketing experiments that they are conducting at the moment.

On the other hand eBay was one of the largest AdWords advertisers and they poured tons of money into Google’s network, but this is very good news for Webmasters and AdSense publishers as everyone knows that eBay ads were the cheapest PPC ads and nobody liked them. In this scenario only Webmasters will profit as small advertisers are not able to beat the top tier advertiser requirements for low cost pay-per-click program and they will have to pay quite more than what eBay did in order to advertise their products.

Actually bad news for the Giants and Good news for the webmasters is not such a bad news afterall.

UPDATE:
Google just backed up and changed the date for this event trying to put the heat down.

eBay Live attendees have plenty of activities to keep them busy this week in Boston, and we did not want to detract from that activity. After speaking with officials at eBay, we at Google agreed that it was better for us not to feature this event during the eBay Live conference. Google is constantly reaching out to new users and sellers, and we are available to privately discuss any matters of concern with individuals as they relate to Google products.

source: the official google checkout blog

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