June 12, 2008

Yahoo playing dirty with eBay on Google Adwords

Filed under: To eBay or Not To Ebay, eBay vs. other Venues — admin @ 7:26 am

When craigslist filed a lawsuit against eBay, illustrating eBay’s deceptive advertising on Yahoo, I guess Yahoo thought it would be a good idea to use the same (btw. completely against Google Adwords advertiser’s policy) tactic so now Yahoo Shopping ads show up on eBay related searches as ebay com.

If you see this ad on our website, please do not click on it - no need to support deceptive advertising, be it originated by eBay or it’s competitors, such as in this case.

This is an interesting development. I was under the impression that Yahoo and eBay were “buddy-buddy” relationship. In 2006 Yahoo and eBay entered into several partnerships and I thought that those “partnerships” were a partial reason for Yahoo’s discontinuing Yahoo Auctions in US in June 2007. With a Yahoo campaign of this sort, one has to ponder if eBay managed to alienate yet another ally.

No doubt both Yahoo shares and eBay shares are in turmoil so one would expect both companies taking extreme measures to reverse the trend and defend their margins.

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