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Google and Amazon news

Back in 2003, Google licensed web search and sponsored links to Amazon.com. However, there are now reports that Amazon is testing a Google AdSense alternative. According to Online Media Daily:

"The sponsored links, which will show up alongside links to Amazon products, are based on keywords that appear on publishers' sites, or that site owners establish with Amazon. While some analysts see parallels between Amazon's beta ad program and Google's AdSense, it is not clear yet whether the programs will compete directly."

It will be interesting to see how thing will pan out, but it is apparent that both Amazon and Google both have clauses in their terms of use for these programs indicating that it is not okay to use multiple contextual ad sources on the same web page. It will also be interesting to see what type of conflicts arise from their 2003 contract. Online Media Daily summarized:

"Although it is not uncommon for Internet partners to compete--or for Internet competitors to partner--Google's existing relationship with Amazon is significant. Google not only supports Amazon's search function, but delivers sponsored links on its site based on a multi-year agreement the companies inked in mid-2003."

To add one last twist to the story, which may or may not be directly related, Google just hired Udi Manber, Amazon's former chief executive for Amazon's own search product A9. Forbes reports:

"Manber is the most recent high-profile hire that Google has siphoned away from its Internet portal competitors in the past few years. In that time, Google has ascended to the top of the search field and garnered a majority market share in all searches."