eBay AdContext – New Contextual Advertising Option

In an article on CNN.com, there are details on eBay's new contextual advertising option, which is scheduled to go live next week:

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.

source

A quick search on Google brings up many discussions around the net about this "new alternative to Google Adsense". However, I dont see it as such...

Unlike Adsense, eBay's AdContext program is not set up to pay for click-through's. Instead, it pays you a percentage of the sale (more likely a percentage of eBay's commission on the sale, or a percentage of the rate agreed upon between eBay and the seller).

For this reason, it's not at all like Google Adsense - or at least not like their traditional payout structure. Google is also currently rolling out their Cost-Per-Action model in the very near future.

While AdContext is currently creating a bit of a buzz, it should be noted that eBay has had an affiliate program in place for quite some time, which pays out commission for new leads (visitors who sign up for their first eBay account) as well as commission for high bids resulting from your referral.

There was no mention as to whether AdContext would pay out on the same model, still offering a per-lead commission, or if this would be a separate payout structure altogether. I imagine eBay Affiliates will get all of the details via email within the next week or so, though...

You can sign up as an affiliate for eBay through their website, or directly through Commission Junction.

AdContext is similar to what the eBay Affiliate Program already offers, except that it chooses and displays ads on your webpage similar to the way that Google Adsense does - by displaying products (auctions) related to the content on that page.

Their current tools allow you to select auctions for display based on a range of criteria - from seller to keyword. These ads are updated automatically for you, so once you add the code to your site it doesnt require any manual maintenance. There isnt going to be a huge difference from what I can tell... except perhaps in the Ad Formats and possibly in the payout structure.

You can see an example of the current format here: Darts on eBay. I simply selected "steel tip darts" as the keyword phrase, and eBay keeps that page updated with current auctions for steel tip darts.

This particular website does more revenue from the eBay affiliate program than from Google Adsense, though neither are heavily promoted there as the focus is on product sales through the main pages of the site. The commission on high bids (or buy it now) ranges from dimes and quarters to a buck fifty - depending on the amount of sale. Obviously higher ticket items would bring higher comissions.

I will say that I like the Ad Formats that they are offering with AdContext. Particularly the Text & Image and the Flash formats. The Text & Image reminds me of the strategy of using images next to Adsense ad blocks in order to increase your CTR. I can see how this would improve click through's to eBay on the sites where I currently display their listings.

The great thing about eBay, in my opinion, is that they are a household name. While people are wary of scam artists (thanks to negative publicity by the media - who seem to think the general public would be bored with success stories or positive mentions), they are also more likely to make purchases on large well-known sites like eBay and Amazon... than they are to whip out their credit card on a site they have never heard of.

As an affiliate myself for Google Adsense, eBay and YPN - to name a few - I have to sit back and look at all of this news objectively. I can see where a little buzz might cause people to jump in and start re-working all of their websites.

All of a sudden it's not just the traditional Google Adsense to consider. Now there is the Google CPA (which is a poor alternative to true affiliate marketing, if you ask me), there is Yahoo Publisher Network to test against Adsense, Google Video & Image ads, Chitika - and now eBay AdContext.

If a person wasnt careful, they could make a real mess of their website... and never truly know which of the options performed best.

My advice... test slowly, and test thoroughly. What works on one website may or may not work on another. So instead of taking someone else's advice - or getting inspired by someone else's results - test one small change at a time on your web pages and track the results.

There are a lot of great options for making money online. And there are hundreds of ways to get distracted and work endless hours putting yourself in the hole.

Get focused. Analyze all of the options. And always keep your target market in mind first and foremost. Generally what is best for them, is also best for you as the site owner.

As for AdContext, I'll keep you posted of anything else that I hear. As an eBay Affiliate, I am anxious to hear more details and test this out on my own niche sites. I'll let you know how that pans out 😉