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Thursday, June 14, 2007

Google-eBay Spat Shows Need for Competition

Auction site eBay has pulled out of Google AdWords as the frienemies are close to no longer being on speaking terms.

The refusal of one multi-service organization to do business with another proves the upside of mega companies such as Google, Microsoft, etc. If Google offers everything from ads to search to video, then their competitors will have little choice but to team up with other companies (or buy their own), such as eBay needing a viable search marketing partner.

Strong competition is healthy for the industry, and only by competitors growing in size can they keep each other in check. Independent companies can continue to work with the "best of breed" parts of these organizations.

By John Gartner at 09:45 AM | Comments (0)

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