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06.13.06


eBay To Implement Keyword Advertising

By Doug Caverly

According to eBay chief strategy officer Michael van Swaaij, the online auction site is going to adopt a tactic used by Google and Yahoo.

eBay, Swaaij said, will let affiliated websites feature contextual ads for eBay auctions in exchange for a percentage of any ensuing eBay sales.

The new program, which is known as eBay AdContext, is part of a larger effort to incorporate eBay functions into separate websites.

AdContext should generate fans with its easy integration and simple functionality - a few embedded bits of code will automatically display items for sale through eBay.

The system will display products related to keywords on the Web page, which is known as keyword or contextual advertising.

The ads will automatically change as new products come through eBay.

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Websites that utilize eBay AdContext will stand to get a 40 percent to 70 percent cut of resulting sales, depending on volume. "It is a way for Web sites to get an additional monetization stream," Swaaij said.

The new eBay advertising system is not intended to compete with the ad networks of Google and Yahoo.

It is supposed to represent another choice. eBay spokesman Hani Durzy pointed out that sites will be able to offer advertising from both eBay and other sources.

And one big change may be on the distant horizon, according to information released at the eBay Developers' Conference.

The company is apparently looking at ways to let Web developers use its reputation feedback system, which has long been a fiercely guarded aspect of the site.

However, Greg Isaacs, eBay's director of developer relations, said a final decision about opening up the seller feedback system for use on other sites could be years away.

Nonetheless, these developments underline eBay's seriousness about its expansion and diversification.

About the Author:
Doug is a staff writer for WebProNews covering technology and business.

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