eBay to Release Keyword Advertising System
According to a Reuters report from the eBay Developer’s Conference in Las Vegas last weekend, the world’s leading online marketplace is set to unveil a keyword advertising system for eBay sellers to promote auctions on other Web sites, essentially borrowing from the strategies of Google and Yahoo.
Dubbed AdContext, the new system is built on eBay’s relevant keyword selection technology, and is designed to give affiliates an automatic way to incorporate dynamic eBay content into their Web sites. The system scans the text of a Web site for keywords and returns relevant eBay content to the web page. For example, a Web site about sports could use eBay AdContext to display ads for sporting goods listings or eBay search results for memorabilia related to a specific sports team. When users click on the eBay ad, they arrive directly on the eBay site.
Michael van Swaaij, eBay’s chief strategy officer, told an assembly of software developers on Saturday that eBay’s vast group of auctioneers will now be allowed to run contextual ads on other Web sites in exchange for a percentage of the resulting eBay sales.
As listings change on eBay, advertising automatically changes on affiliated Web sites to reflect the new products or services for sale on eBay. Web site affiliates in turn receive a cut of 35 percent to 60 percent of sales, depending on volumes.
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