eBay to test advertising auctions on other sites with new eBay AdContext

[mandy]

Online marketplace eBay Inc. is set to unveil a keyword advertising system for eBay sellers to promote auctions on other Web sites, borrowing from the strategies of Google and Yahoo.

Michael van Swaaij, eBay's chief strategy officer, told a conference of software developers here on Saturday of plans to allow Web site affiliates to run contextual ads for eBay auctions in exchange for a cut of the resulting eBay sales.

EBay's system differs from pay-per-click advertising systems offered by Google (GOOG.O) and rivals Yahoo Inc.  and Microsoft Corp.  by linking only to eBay auctions rather than serving as a generic advertising network...

full article: http://www.washingtonpost.com/wp-dyn/con...00807.html

The eBay contextually relevant ad system will work as follows, according to Reuters reports:

  It plans to provide hundreds of thousands of eBay auctioneers with simple snippets of code they can embed on other Web sites that showcase items that are for sale on eBay's site…system scans the text of a Web site for keywords and returns links to relevant eBay sales listings to the Web page. A Web site about sports could automatically feature links to sporting gear or memorabilia available on eBay. As listings change on eBay, advertising automatically changes on affiliated Web sites to reflect the new products or services for sale on eBay.

full article: http://blogs.zdnet.com/micro-markets/index.php?p=108

[amy]

Wonderful news! As if there weren't enough eBay affiliate web sites!

[xppman]

Won't work... Consumers are tired of old tired feebay.

[regic]

More info on eBay's expanded options for its affiliates.  Affiliates will be able to use a new API to  block eBay auction and eBay Store items from appearing on their web sites:

One will let affiliates limit the listings their visitors access to eBay Express items, filtering out other eBay inventory, such as used items and those available on auctions.

http://www.pcadvisor.co.uk/news/index.cfm?newsid=6367

[accentnepal]

Translating eBay-speak for the masses:

"We want to increase the number of times buyers come to particular sites,"

Translation: This is to boost business to those sellers we really like, not for everybody.

Web site affiliates receive a cut of 40 percent to 70 percent of sales, depending on volumes.

Translation: affiliates will receive 40% of FVF on those sales that qualify. The buyer must bid within 30 seconds of clicking on the ad, the bid must be for at least three times the value of the item, Re-bids do not qualify. Only buyers in Memphis and Detroit will qualify. These funds will be computed by the same ultra-reliable software currently responsible for referal credits.

Web site affiliates will reportedly receive a cut of 35 percent to 60 percent of sales, depending on volumes.

Translation: We may not include Memphis.

One (new program) will let affiliates limit the listings their visitors access to eBay Express items

Translation: Its the Expressway or the Highway.

The technique of contextual advertising is already used by Google and Yahoo.

Translation: We now have the confidence to infringe more patents.
news.bbc.co.uk/1/hi/business/5070892.stm
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[regic]

Translation: We now have the confidence to infringe more patents.

Patent infringement is how Google AdWords got its start.  ;D

The lawsuit Overture filed against Google in 2002 over AdWords was finally settled in 2004 with Google agreeing to issue 2.7 million shares of Google stock to Yahoo. and to license several patents from Overture.