Google’s $312 Million Joke
It appears that, a week later, eBay has not restored its ads to Google Search. eBay famously pulled the ads last week in response to Google’s Let Freedom Ring party, which Google cancelled in backing down. It appears they have not restored the ads, which will mean a noticeable hit to Google’s bottom line. Reportedly, eBay buys $26 million a month in AdWords ads, which would translate to a loss to Google of about $312 million a year.
As a Google user, I’m glad to see the ads go. eBay used Automatic Keyword Insertion to include ads on a huge number of search terms that were irrelevant and sometimes offensive. eBay would offer great deals on racism, let you buy babies, tried to sell skin cancer, and in one classic post, advertised for “nigga”, “homeless people”, “honky”, “poo”, “crap”, “pee”, and “sisters”.
Should Google fire the person who is responsible for the party? Probably. It’s a major hit to the bottom line as the result of a very juvenile insult against a major competitor who just happens to be a major advertiser. It’s a screwup costing millions in ad revenue, and if I caused it, I’d be packing my desk right now.
You asked: Should Google fire the person who is responsible for the party?
I don’t know. Google and Ebay were destined to step on each other’s feet (not just toes) sooner or later. Almost every business that Ebay is in, Google has already stepped in there or has the potential to do, if they so choose.
I think Google should just take this as an opportunity to compete with Ebay head-on. It will be interesting to watch the shake-down.
LL
Comment by Libran Lover | June 21, 2007
i do not like google one bit. they can not be trusted and are an evil company.
Comment by omar benit | June 21, 2007
Maybe they should fire the guy who canceled the party as the result would have been the same.
At some point this issue has to come to a head. eBay, is protecting their turf and were looking for an excuse to do this.
BTW, the $ amount I am hearing in $26 Mill a Qtr. not per month. Still a ton of cash.
Comment by Randy Smythe | June 21, 2007
Yeah, $104 million a year is still a lot, but not as bad. You should argue it out with Barry, since he produced the $26 million/month number.
Comment by Nathan Weinberg | June 21, 2007
[…] Google’s $312 million joke. […]
Pingback by Linker Barn: Friday Fishwrap Version for June 22: | June 22, 2007
I think they’re just making sure Google learns that eBay won’t hesitate to pull all their ads. Let them know who’s boss. Once they think Google can see they’re serious about it, I expected them to restore all ads - unless Google competes with PayPal too directly, perhaps.
Either that, or they lost their list of advertisement keywords, and are scrambling to restore all ads, letting everyone think they’re doing it on purpose. =P
Comment by Tim | June 22, 2007
Not cheap joke eahh?
Comment by Zen Master | March 2, 2008