Ebay drops Pay Per Click – Doesn’t do a dent
June 15, 2007
Ebay dropped all the Pay Per Click Ads from Google Adwords, Didn’t even notice a drop in traffic or conversions. The top five search terms sending traffic from Google to eBay were “www.ebay.com” or “ebay,” and accounted for 25% of eBay’s traffic from Google.
This means flatly that Organic Results are the driver of traffic to Ebay.. or better said, they have been wasting money on Pay Per Click to the tune of 2% of Google’s total revenue.
What does this actually mean, well if you are paying 2% of Google’s total revenue (for 2006 it was $10,604,000,000) of that is $212,080,000 is from Ebay. If you drop a quater of a billion dollars in PPC, and notice no change in traffic?
This raises a red alert to every advertising agency on the planet. If they focused 100% on Pay Per Click, and news like this breaks out.. it should be a wake up call to every ad agency charging 20% over spend and an hourly rate to boot.
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