Google and Ebay Differ in Business Strategy

Last time I read a post to the effect that Google and Ebay come to blows when Google Checkout wants to compete with Ebay’s Paypal and that Google Base is actually fighting against Ebay. Google's stock is down 1% this morning after a report that Ebay's stopped purchasing text ads on the search engine. The uneasy peace between the two internet giants is finally over.
One guy comments that “The main difference between eBay and Google is that while eBay is majorly protectionnist, Google is open to fair competition (I would love to hear counterexamples if any). ”
I think this guy is missing the point. The truth, in fact, is that the nature of traffic on EBay and on google is a bit different. The traffic on EBay is more commercial than that of on Google. Though the traffic volume of Google is more than Ebay, many of the Google traffic is entertainment and other non-commercial activities in nature. So, for Google, it has to increase its traffic volume greatly, only then can Google increase its commercial traffic volume, which can increase its main revenue Google Adsense Program. For Ebay, the pressure to increase traffic is not so great as that of Google. This is why Google is an avid promoter of the Open Social and Open Social ID.
So it’s still debatable whether eBay is majorly protectionist, yet it’s certain that Google must expand its overall traffic volume in the disguise of whatever. Google has to do this, because it’s determined by its present source of revenue. The different approaches adopted by Ebay and Google are about business strategy, not about pro-or-anti-protectionism at all.

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