eBay and Google set to start replacing tired advertising models

It's pretty well known that Google's (NASDAQ: GOOG) AdWords internet advertising system works. It combines the auction format of letting advertising customers compete against each other for advertising spots along with customer responsiveness to ads in order to determine which advertisers see premium placement on Google properties. This type of "customer relevancy" combined with an auction format keyword bidding has made Google, well, the most successful advertiser on the internet.

But, when it comes to internet and auction, don't ever count out eBay (NASDAQ: EBAY). The world's largest auction web property wants to up the ante (so to speak) in creating an auction-based sales system that would put it directly in the crosshairs of Google. How so, might you ask? As Zac Bissonnette mentioned yesterday, ebay is making it possible for radio stations to auction off ad-time. Intriguing. Is this only the beginning for eBay? Although both eBay and Google are relative newcomers to the field of brokering advertising for television and radio, the lukewarm response to television brokering has already sent a signal. What's next?

Even if radio and television brokering ends up not working as well as planned for both eBay and Google, eventually the age-old model of ad brokering that's existed for decades will fall as some old paradigms shift. Google has already shown (and eBay as well) that giving customers a choice and putting them in control can lead to much greater things when compared to the protectionist system of relying on higher fees for airtime for traditional ad models that are working (and slowing) today in the television and radio markets. There is a reason more money is moving to internet advertising and away from television and radio networks: The customer interaction and advertising customization is years ahead of the old way of advertising. Leaders like eBay and Google know this, and also know that as old models of advertising and brokering pieces of advertising, there will be new models in television, radio and print needing to step in and take over. It's not a question of if, but when.