Popular auction site e-Bay has pulled its US advertising
from search engine giant and rival Google over what is
considered the latter''s provocative decision to hold an
event on the same evening as e-Bay''s annual merchants''
conference, e-Bay Live.
the US, e-Bay spends an estimated $25 million a year advertising
on AdWords, Google''s advertising system that shows advertisements
based on keyword searches on the web, making it potentially
the largest single source of revenue for Google.
believes Google''s event was aimed at attracting attention
away from its payment system PayPal, the largest online
payments system, to Google''s own card processing service,
Checkout, launched in the US last year.
is currently banned on e-Bay and Google''s manoeuvre may
have been part of the search engine''s efforts to force
the online auctioneer to accept Google''s payment processing
Google cancelled its own function a day prior to the event
and announced in its blog, "After speaking with officials
at eBay, we at Google agreed it was better for us not
to feature this event during the eBay Live conference."
expect eBay to resume advertising on Google, which accounts
for over 50 per cent of search queries in the US and 80
per cent in Europe, though they expect more skirmishes
between the two market leaders.