A move towards a payment plan by Google is big news for the industry. Its combination with GoogleBase creates a direct competitor for the likes of eBay and PayPal and/or Craigslist.

This move is deeper than just competing with the eBay and Paypal combo. This move is about filling the holes in a pathway of integration. As I’ve discussed before I think Google’s strategy is not towards that of a web based office platform.

The possibilities of mixing google services has many versioning possibilities as they combine web services into valuable packages. Classified listing sites are quickly pushing the Craigslist model into the web 2.0 arena and Google is now right in step.

Google’s focus is not to take over this industry and compete directly with eBay. The model is different this time around and it revolves around the localization of advertising. Google wants to maximize its revenue in AdSense and the best way to do that is through localization.

Integration of services will push the advertising revenue further. But what better means for localization than providing ways for small business to operate online? Classifieds will provide the same nature of localized AdSense delivery.

The reason Google will not be moving into the ‘web office’ space is because they don’t want to be a software company. They will be a media company who operates on advertising based revenue. Google Office is not a profit niche for google. Bringing AdSense closer to the user is, and they will create as many mediums and channels it takes to rule advertising.

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