Google Auctions to Rival eBay and Yahoo?
Google is reportedly sending 600 workers in engineering and support to a new location in the Phoenix area which is the center of a new Google complex in Arizona. The site has not been established yet, but Google announced their plans on Arizona expansion at an event hosted at the State Capitol yesterday.
BizJournals reports that unnamed sources say that Google is planning a mega auction center in the new Arizona location in a bid to launch Google Auctions, in direct competition with Yahoo, MSN, and of course, eBay.
Aaron Wall of the SEOBook wonders how such an auction service from Google would effect its advertising model, Google AdWords, which includes mega advertising campaigns from eBay and eBay resellers. Will those sellers be advertising on AdWords in the future for Google Auctions listings and reimbursing Google a higher percentage of the item sale instead of paying the Google AdWords pay-per-click price?
From Aaron : “You have to wonder how this will effect eBay AdWords bidding strategies if a rivalry between them heats up. eBay is one of the most frequently searched terms, and eBay has one of the largest AdWords spends.”