eBay Starts Keyword Advertising

  |  June 24, 2003   |  Comments

UPDATE: The online marketplace learns the lessons of the paid search, offering pay-per-click banner advertising to its army of sellers.

Online auction juggernaut eBay announced on Tuesday a new advertising program for its sellers that takes a cue from the red-hot paid search business.

"Keywords on eBay," run through Conducive's AdMarketplace, will allow eBay sellers to bid on keywords to trigger banner ads touting the seller. Keywords can be eBay categories, types of items, brand names, store names, or eBay user identifications. Minimum bids begin at 10 cents. The ad program will officially start up on Thursday.

For example, an eBay merchant selling classic furniture that bids the highest on the term "antiques" would have a banner ad displayed on the search results page anytime a user queried "antiques." The banner ad can lead to a specific item, a merchant's online store, or its "About Me" page. The merchant only pays when a user clicks on the ad.

In a related deal, San Jose, Calif.-based eBay signed a multi-year deal with DoubleClick to use its DART for Publishers hosted ad server to deliver the ads for the program. Conducive, founded by former DoubleClick employees, will handle the bidding process for determining which ad will be displayed and the creation of the graphic ad, including Flash. AdMarketplace also allows advertisers to upload their own creative.

"Search is certainly one of the most basic but elegant platforms to trigger the right type of message at the right time," said Mark Nathanson, a marketing specialist at AdMarketplace. "It's looking at something that works well [paid search] and evolving that to include the graphic and animated quality."

Advertisers can set a maximum budget for a campaign and see where their bid falls in the rotation for a particular keyword. Nathanson said the ad rotation will include more than simply the top bidder.

With as many as 150,000 people using eBay as their main place of business, the keyword-advertising program will allow eBay to cash in on the growing popularity of its online marketplace, which boasts nearly 20 million active users, and the popularity of search as a way for consumers to find products. The company estimates that its site handles 79 million item-related searches each day. A sign of its popularity is this week's eBay Live! gathering in Orlando, Fla., which is expected to draw 10,000 people to hone their eBay business acumen.

Search has become a key driver of e-commerce. According to Web analytics firm WebSideStory, up to 10 percent of all referrals to e-commerce sites come from search engines. Search destinations have sought to capitalize on that through keyword-based advertising, which uses a pay-per-click model.

The booming search market, which is forecast to reach $7 billion in 2007, has brought about efforts to bring search beyond simply search engines. News sites, from CNN.com to NYTimes.com, have all added paid listings to their search functions, while Amazon.com has led the way for e-commerce destinations, inking a deal in April to carry Google's AdWords text listings.

ClickZ Live San Francisco August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...
  • Online Marketing Analyst
    Online Marketing Analyst (FULLBEAUTY Brands ) - New YorkINTRODUCTION: Are you interested in a unique career opportunity where you can represent...
  • Copy Editor
    Copy Editor (ClickZ / Search Engine Watch) - New YorkROLE OVERVIEW The role of the copy editor for ClickZ has many demands. Ultimately, the copy...