EBay Inc. has pulled all of its paid search ads from Google Inc.'s AdWords network in the U.S., an eyebrow-raising move likely to be seen in the industry as a sign of deteriorating relations between the two Internet giants.However, eBay kept its AdWords campaigns going outside of the U.S., eBay spokesman Hani Durzy said today.
Durzy characterized the decision to pull the U.S. Google ads as an instance in a continued experiment eBay does to determine the best allocation of its advertising and marketing budget.
However, a source familiar with the situation said the move is an angry reaction by eBay's management to Google's decision to hold a protest party concurrent with the start of eBay Live, the company's annual conference for merchants. Google has been reaching out to media to promote the party, aimed at eBay merchants who are upset that eBay doesn't allow them to use Google's Checkout online transaction system.
EBay Live begins tomorrow evening in Boston, which is the same time and place Google has chosen for its protest party.
This person also said the situation is fast-developing and fluid, with high-ranking eBay executives holding meetings right now to discuss the extent of the decision.
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