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eBay and Google: Will one of them cave in? Who?

Last week, eBay Inc. (NASDAQ: EBAY) pulled out its AdWords from Google Inc. (NASDAQ: GOOG). A week later, it's still not clear who was hit harder by the move, Google or eBay. Now it's time to try and examine the impact of this move on both companies. It is difficult to come up with exact, accurate data as, of course, both companies keep such metrics to themselves. I'll at least try to put the little we know/estimate in context.

First Google. It has been suggested that eBay is the single largest buyer of AdWords. What does it mean? According to some analysts, eBay spends $25 million a quarter on advertising on Google. It may not sound much when compared to Google's overall revenue ($3.7 billion in latest quarter), but it does hurt, and also sets a dangerous precedent for other advertisers.

Now eBay, which is a little more tricky:

Continue reading eBay and Google: Will one of them cave in? Who?

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Last updated: May 26, 2012: 05:16 AM

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