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The article explains why eBay shouldn't advertise against the term "eBay", all very logical.

... Until a competitor starts advertising against the the term "eBay".

At which point, online advertising becomes protection money.



This is the strongest antitrust case against Google in my opinion. They are the monopoly search engine. Tons of people google a website name instead of typing in the URL. Tons of people don't know the ads are actually ads and Google is making it harder to tell them apart from the every year[0]. It's basically like the mafia telling you to fork over money or else they put up your competitors' billboards in front of your store. Not a very scary mafia, but still.

[0] https://images.app.goo.gl/WjafWzujgjHT32Y17


This is also an issue in Apple's app store.


A relatively friendly jab: at one point if you search "emacs" you could see an ad along the lines of (forgot the exact wording):

escape meta alt ctrl shift AAARGGHHHH.... try VIM.


Click-through rates will be very low. In most countries you cannot impersonate another company, so they cannot call themselves „eBay“ in the ad copy.


They may not be able to call themselves by the competitor's name, but what about the "alternative to <company>" that we see a lot.

Furthermore, Google will "dynamically" assemble an advert based on the current search to 'optimise' click-though (and they recently sent a mail out making it clear this will be the only type of text ad going forward)

They think they're optimising "click through" rate.

But what they're really doing is using heuristics to find the advert that's most likely to be confused with the top search result.

Either way, the ad platform wins.

And companies pay their protection money.


Did anything change there? I remember Basecamp’s Jason Fried complaining about it[0] but I wasn’t aware of any policy changes that prevent someone from bidding on their competitor’s names and essentially placing their brand ahead of yours when searching for your brand name…

[0] https://fortune.com/2019/09/04/google-trolled-search-ads/


If your brand is a registered trademark, you can have google stop your competitors from referencing it in search ad copy.

https://support.google.com/adspolicy/answer/6118?hl=en


Bit that's only in copy…

You can't stop them using it for targeting, and that's how part of the ad extortion market works

- someone advertises against you brand as a keyword so now you have to advertise against it too… Google wins in revenue terms

- it's also the source of scams e.g. people advertising against searches for free public services on say gov.uk, but charging for the same thing


as luck would have it, my mum (nearly 70, but pretty good with technology) just fell for something like that. She wanted to book a Ryanair flight so googled for Ryanair. First result is an ad for some kind of a scummy reseller called esky. She ended up paying way more for the flight plus some extra unwanted stuff like insurance and online check-in… urgh.




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