Saturday, June 23, 2007

EBay returns to Google advertising

After a spat between two of the world's largest Internet companies, online auctioneer ebay Inc resumed running advertising through Google Inc on Friday.

In the past week, eBay - one of the biggest buyers using Google's AdWords marketing program - increased advertising on Google rivals, including Yahoo Inc., IAC/InterActiveCorp.'s and Microsoft Corp.'s

EBay spokesman Hani Durzy said the experiment proved that eBay didn't need to spend as much on Google ads, which generally run to the right of Google's regular search results.

Durzy wouldn't provide dollar or percentage figures but said that eBay's pullback from AdWords in the United States would be "significant."

"Overall the takeaway for us was that we weren't as dependent on AdWords as some out there may have thought," Durzy said.

He said traffic to the site was higher during its 10-day experiment compared with the same time a year ago, and eBay sales don't appear to have been dampened.

"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."

Google spokesman Brandon McCormick confirmed that ebay returned to AdWords on Friday afternoon.
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