Ebay to challenge Google for radio ad sales

Posted Jun 6th 2007 8:15AM by Zac Bissonnette
Filed under: Competitive Strategy, Google (GOOG), eBay (EBAY)

eBay (NASDAQ: EBAY) is making it possible for radio stations to auction off ad-time, not long after Google (NASDAQ: GOOG) decided to make a move into the radio ad-space. Through a partnership with Bid4Spots Inc., more than 2,300 radio stations will be able to auction off air-time through eBay's Media Marketplace, which the company is currently using to try to sell ads for cable television. Acting as a broker, eBay will take a cut of the ad revenue.

The plan will likely face some resistance from radio stations fearing that an auction format could result in lower prices for air-time, and eBay's cable-television ad program has struggled to attract networks, who are afraid of the same thing.

So far, neither company has gained much traction in its efforts to expand into ad sales in traditional media outlets. The current system is deeply entrenched, and many companies are seeing little reason to test Google and eBay's innovative format.

But with radio and television ads facing increased competition from the internet, they may have to give it a try soon.

Tags: EBAY, GOOG, google, radio