Will eBay Steal the TV Ad Market from Google?
In a move that could have repercussions for Google's offline advertising plans, several major advertisers have banded together to revolutionize the way ads for television are bought and sold. Central to their plans is an online auction marketplace called e-Media Exchange, powered by eBay.
Not mentioned anywhere in the plans is new kid on the ad block, Google, which the consortium of advertisers said they consider a threat.
Although Google has not yet entered the television advertising market, the company has tried its hand at print ads and is currently testing radio advertisements.
With an online auction space for TV ads, eBay could establish relationships with advertisers and preempt Google's move into the space. The TV ad market is the largest advertising market, worth $55.4 billion in 2005.
The plan, covered in detail in the Wall Street Journal (login required), has not been finalized and is facing significant opposition from TV executives. But, if implemented, an online auction site for TV ad time would shift more power to advertisers and help eBay take a more central role in ad brokerage.
eBay and Google have begun competing more directly these days. Earlier this year Google released an online payment system, Google Checkout. eBay, which owns the most popular payment processing system, PayPal, banned Google Checkout from its online auctions. eBay is also involved in an extensive advertising partnership with Yahoo.
Coincidentally or not, the proposed TV ad plan involves at least one other major Google competitor, Microsoft, which has signed up as an advertiser.