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Monday, June 25, 2007

eBay Restarts AdWords Campaign with Reduced Spend

Posted by @ 8:57 pm
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Last week I reported on a potential war brewing between eBay and Google regarding their competing checkout solutions, Google Checkout and Paypal. The conflict left Google in the dark when eBay decided to pull their AdWords listings from Google search results.

eBay called the move an ‘experiment’ claiming they wanted to test how the change in advertising would effect traffic to the site. The results are now out. Hitwise published data to show how the experiment affected eBay’s traffic from Google, and the sites traffic overall.

The following graph represents how much traffic eBay receives from Google on a daily basis. eBay removed Google advertising on the 12th June.

As the graph shows, the removal of Google advertising lead to a significant drop in the amount of traffic eBay received from Google. However this did not seem to have a dramatic effect on the overall traffic sent to eBay.com as shown in the following graph:

Hani Durzy, a spokesperson for eBay said they would resume buying their AdWords advertising again, but at a reduced level. eBay had been spending as much as $25 million a quarter on Google advertising.

“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 were not as dependent on AdWords as some people thought.”

According to Reuters, eBay now plans to spend more on competing advertising from Yahoo!, MSN, AOL and Ask.com. On a personal note, I’m glad to not be seeing an eBay ad for every search query, after all, what relevance does eBay have on searches such as “used brain” or “baby”!



Matthew Elshaw Matt is a marketing professional at ineedhits.com, an international search marketing firm. Matt's passion for online marketing began at university and has proved invaluable in steering product development and marketing initiatives at the company. Matt is a regular contributor to the ineedhits search marketing blog.

View Matthew Elshaw's profile






Discussion (1 - comment)

Well business is business and it’s a world of changes, changes, changes. I think ebay has been around long enough that no matter where they spend their money, people will find them. So they can afford to deal for less or with other search engines. It should be no bad blood so to speak, business is business and it’s always changing.

By informatiion variety place - July 10, 2007




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