EBay ends Google AdWords boycott

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Online auction giant eBay has returned to using Google AdWords after a 10-day boycott, although the company says it will now be buying from Google in smaller numbers.

EBay's new strategy will focus on alternatives to Google including spending more money on advertising placed on Yahoo, AOL and MSN and cutting the budget for Google AdWords.

The conflict between the two companies came about in Boston June 14-16 at eBay Live, the annual customer event for the eBay community. Google Checkout had been banned from eBay as a payment method and was turned away from being an exhibitor at the event, according to Google.

Not wanting to miss an opportunity to meet with eBay users, Google tried to lure the convention-goers to its own party called "Let Freedom Ring" on opening night of eBay Live.

As a response, eBay announced that it would pull all of its advertising off of Google's AdWords network.

EBay claims that statistics from Web analytics firm Hitwise show that the ban actually led to a traffic increase.

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