Ebay says Google Ads don't work


Reuters reports on Ebay's study showing that Google advertising doesn't work as well as it did.


"The conclusion: Incremental revenue from paid search was far smaller than expected because existing customers would have come to eBay regardless, whether directly or through othermarketing channels," eBay spokeswoman Johnna Hoff wrote in an email to Reuters on Tuesday.

The study highlights a potential problem for Google, which generated $46 billion in ad revenue last year, up from $38 billion in 2011.

Some leading e-commerce companies, such as eBay and Amazon.com Inc, that have traditionally been big buyers of Google paid search ads may not need the service as much anymore.


So what would you do if you were the account manager at Google, looking after only "mega brands" ?


Wrong Strategy

They don't have any delineation between existing customers, new customers, brand terms, generic terms and they are trying to generate sales across the board instead of focusing on the categories that drive their biggest sales volume.

Terapeak gives you all the data you need to make those sorts of decisions.

Then you have to factor in economic conditions, competitor strategies and the diversification of the Adwords product, retargeting, product ads etc. and I just think eBay have continued to always do what they have always done, instead of changing their strategy in line with user behaviour.

Google should be inviting all of their big brands in to show them how they can get better results, or offer assistance to their agencies. But in most cases Google have a hate/hate relationship with the agency and would prefer direct relationship.

The Enhanced Campaigns launch is a classic. Google should have produced a one sheeter PDF instead of a bunch of marketing videos. They seem to always focus on brand new customers at the detriment of existing.

Autogenerated ads that send

Autogenerated ads that send us to often useless autogenerated pages isn't a way to win customers? Astonishing insight, eBay.

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