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Take That, Google: EBay Getting Into Contextual Ads

By - June 12, 2006

From ZDnet:

eBay unveiled this weekend a new, automated keyword-based contextual ad system for use by its partner network…..The new automated eBay AdContext product differs from eBay’s current manual ad placement system for promotional partners. Currently, partners create their own selection of eBay ads on their Web pages, by manually entering specific keywords and categories as search terms in order to return listings. eBay AdContext, however, will automatically read the content of the Web site—which may change daily—and surfaces ads that are most relevant to that content.

For now, this is only on eBay….but…More on this soon.

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  • http://convergence.in/blog Convergence.In

    Yahoo/MSN/eBay neither have DOERS profile. Just talk and talk for quarters and years while Google continues to grow.

    eBay is trying to build something like this
    From The Motley Fool
    U.S. Internet advertising grew 38% year over year to $3.9 billion in the first quarter. Google ate 22% of that pie while Yahoo! chomped on 16%.
    Would eBay cut into either’s share? Probably not, but the auctioneer could limit the growth of pay-per-click ads over time.

  • http://www.shimonsandler.com Shimon Sandler

    This is a clever innovation in affiliate marketing. Although, this differs from adsense in that the advertiser doesn’t get paid per click. The payout only occurs after the visitor goes to ebay & a sale results.

  • http://neatonly.blogspot.com Tom

    Alright, the game is more and more interesting!

    EBay begins pay-per-click

    Google begins GBuy

  • http://500hats.typepad.com Dave

    i think everyone is missing the more interesting parts of this and other stories… as we saw with the CPM->CPC transition launched by AdWords & Overture in the early 2000 years, we’re about to witness the transition from CPC->CPA by the major players.

    to wit:

    * eBay partners with Yahoo, almost overlooked is deal point to promote PayPal across their combined market-leading internet shopping sites & network

    * Google launches Gbay to provide point-of-transaction data collection from Google merchants (and theoretically, to offer AdWords pricing based on actual sale not just on click-thrus)

    * eBay launches contextual advertising, again with the potential to offer close-of-sale based pricing

    i expect all 3 companies (Google, Yahoo, eBay) to offer CPA-based costing for their advertising within 12 months, and likely Microsoft to partner up with Amazon (or perhaps to buyout YahooBay? mmm… unlikely) to move quickly to do the same.

    - dave mcclure
    http://500hats.typepad.com

  • http://www.excitingcommerce.com Exciting Commerce

    Seems as if Germany is some kind of test market for contextual advertising/selling. Ebay has been testing its “Ebay Relevance Ad” programm since last summer. Amazon.de recently started its “Self Optimizing Links”, a similar program, that seems to learn and to adapt very nicely to the site´s content.