TABtrader
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 Posted: Fri Feb 11, 2005 12:33 am Post subject: Would this impact googles or ebay share price ? |
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eBay: Key word pricing 'a little wild'
Companies have seen 'bubble-like' price increases for the key word search, eBay unit president says.
SAN JOSE, California (Reuters) - Bill Cobb, the president of North America at eBay Inc., said the company has seen "bubble-like" price increases for the key words that drive Web search advertising popularized by Google Inc. and Yahoo Inc.
"Pricing is a little wild right now. We have to focus on getting fair value," Cobb said at eBay's analyst meeting in San Jose, California. eBay (Research) is among the biggest buyers of Web search advertising key words.
Prices for key words used in Web search advertising have been on the rise as large and small advertisers move more of their marketing spending to the Internet, eBay executives said.
Cobb said eBay will keep 2005 marketing spending in line with prior levels, a comment aimed at easing analysts' concerns over rising costs. Among other things, Cobb said the company is countering the Web search price increases with sophisticated software systems to make eBay a better bidder on key words.
The company is also continuing its print and television advertising campaigns, beefing up direct online marketing and moving into more rich media advertising, the new generation of ads that are interactive and full of motion.
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