Google Losing $68,493 per day


According to this SF Gate article, EBay pulled down it’s entire $25 million dollar per year AdWords campaign on June 14th. After 10 searches today for popular electronic devices, the campaign appears to remain inactive.  If there is any validity to this article (or the handful below) Google just lost $342,465 in the last 5 days and will continue to lose $68,493 each additional day this is down.

San Jose’s eBay cut its advertising Monday shortly after Google unveiled plans for a party in Boston to hawk its online payment service, Google Checkout. Attendees of eBay’s user conference, eBay Live, which starts today, were all invited for free drinks, food and massages.

Called the Google Checkout Freedom Party, the event was intended to lobby eBay to start accepting Checkout, a rival to eBay’s PayPal. Since Checkout premiered last year, eBay has banned it from its online marketplace, saying that the Google service had yet to prove itself in terms of fraud protection.

Hani Durzy, an eBay spokesman, declined to say whether his company pulled advertising on Google in retaliation for the party. But he did voice disappointment in Google for the event, saying, “We didn’t think it was the way for one partner to treat another.”

Related:
http://googlecheckout.blogspot.com/2007/06/let-freedom-ring.html
http://googlecheckout.blogspot.com/2007/06/update-to-our-event-on-614.html
http://pages.ebay.com/ebaylive/
http://www.reuters.com/article/technology-media-telco-SP/idUSN1339779620070613
http://www.techcrunch.com/2007/06/13/ebay-stares-down-google-and-wins
http://www.techdirt.com/articles/20070614/082702.shtml
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9024598

  • D Mc

    If Google is losing that much, then eBay is losing even more.

    Clearly, eBay wouldn’t pay Google for advertising at all unless it resulted in them getting back that money plus more.

  • Eric

    Agreed, I hate searches in google that result in several ebay listings. But you have to figure it was a good investment for eBay at one point. I think the big picture here is that eBay isn’t doing as well as they used to. It costs too much to sell on eBay nowadays, and I am sick and tired of being screwed over by some sellers.

  • Dan