Let’s Get Contextual.

It seems eBay is getting into the ad network space. This weekend at the eBay Developer’s Conference in Las Vegas, Michael van Swaaij, eBay’s chief strategy officer, announced plans of a new ad network. At first it sounds a bit “typical.” Well, it isn’t.

The new program is called AdContext. EBay plans to allow Web site affiliates to run contextual ads for eBay auctions in exchange for a cut of the resulting eBay sales.

AdContext was developed using eBay’s keyword selection technology, which uses proprietary eBay data to match contextual eBay ads to the Web page. The contextual ads take into account the popularity of certain keywords on eBay, not just the keywords on a given Web site, making them relevant to what people are actually shopping for on eBay EBay’s network isn’t generic or horizontal like Google, Yahoo and MSN. Advertisers can link only to eBay auctions. For instance, a movie Web site could link to an eBay auction of vintage movie posters or DVDs for sale.

“We want to increase the number of times buyers come to particular sites,” Swaaij said of the affiliate marketing drive, one of many ways eBay is now encouraging Internet developers to build eBay functions into independent Web sites.

So, sounds a bit boring eh? I thought so, too. However, think about this, what if eBay releases this to the Web and advertisers at large? Hmm, sounds like AdSense to me. EBay also has the Pay Pal network. Not to mention it has the user reputation tool. Maybe it’s AdSense on steroids?

Ironically, eBay representatives said that the new AdContext program should be viewed as complementary to ad networks offered by Google, Yahoo and MSN. Google has also said it wants to be an ally, not a competitor of eBay. In fact, eBay is Google’s biggest AdWord client. Just think about any time you’ve typed anything in the Google search box. There is always a link that says find [the keyword phrase you typed in] on eBay.

One major difference between Google’s AdSense and the new eBay AdContext, is that eBay will apparently be disclosing its revenue share payout schedule with its publisher network partners: Web site affiliates will reportedly receive a cut of 35 percent to 60 percent of sales, depending on volume.

These numbers could give the little guys a chance. “It is a way for Web sites to get an additional monetization stream,” Swaaij said. So Web site owners can make additional money to support their respective sites. This also opens up the door for bloggers. Many rely on text ads from Google to keep afloat.

So what do you think about this new program? Would you use it? Does it pose a threat to Google’s market share in the pay-per-click world? Post to the SPIN blog and let us know your rants and raves.

By Seana Mulcahy
Courtesy of http://www.mediapost.com