Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
It's all very interesting this business about EBay cancelling its Google Adwords advertising in a huff because Google got a little too aggressive promoting its Checkout online payment service to EBay's PayPal customers. But it's sheer bluff and will be short lived because EBay needs Google more than Google needs EBay and both companies know it.
From all reports, EBay is Google's biggest single
customer, spending tens of millions each year on Adwords advertising.
However, Google has literally millions of customers and, with revenues
of about US$11 billion, EBay probably constitutes significantly less
than 1% of its income. So if it came to the crunch, the loss of EBay
would be little more than a blip on Google's financial radar screen.
On the other hand, EBay relies heavily on the traffic that Google sends
to its site. By most estimates, EBay gets as much as 20% of its traffic
from Google. Could it afford to lose that traffic? Not likely.
EBay could of course take its business to Google's search marketing
competitors, Yahoo, Microsoft, Ask.com and so on. They would all
welcome EBay with open arms. But EBay knows that Google can probably
deliver twice as many eyeballs to the EBay site as all of its
competitors combined.
The inescapable conclusion is that like it or not if you have a business
that relies on getting traffic to your website, Google may not be the
only game in town but it is by far the biggest. EBay is about to become
demonstrable proof that there are very few web brands sufficiently powerful
to simply ignore the traffic that Google can deliver. Look for a
resumption of a business relationship between the two web giants sooner
rather than later.
David Bass
| For the fourth year in a row, IDC has placed content security provider Websense (NASDAQ: WBSN) at the top of the IDC Worldwide Web Security 2011 –…
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