AOL Has to Perform Well to Have eBay Ads

The online auction Website eBay agreed to go on advertising on AOL, for less money, if the megasite meets performance conditions established by eBay. Up to now AOL received $ 18.75 million a year from eBay.

Under the new contract, eBay will pay $15 million in 2004 and $10 million in 2005. The conditions established by eBay for advertising on AOL were not disclosed. AOL will also receive less money for selling eBay ad inventory.

The times for online advertising are not good. Other companies are also renegotiating their contracts with online media. Bertelsmann AG, for example, is trying to reduce their $675 million advertising contract with Terra Lycos.,,4_1108121,00.html