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Monday, June 12, 2006

Common Sense: eBay Drifting From Google

Yahoo's gravitational pull of eBay seems to be too strong for the auction site to maintain its relationship with Google.

Hot on the heels of a pact with Yahoo, eBay released an AdSense competing ad network called AdContext. The company has enhanced the context-sensing software used on its website and opened it up to affiliates. According to eBay the system scans the text of a Web site for keywords and returns relevant eBay listings, search results and categories.

The company will split the revenue from any resulting sales with affiliates, which theoretically could produce much larger returns than PPC ads. AdContext won't be as pervasive as AdSense, but don't underestimate impact of eBay buyers and sellers.

Google's biggest advertiser for AdWords is eBay, but my magic eight ball tells me that that will change before the next Olympiad as Yahoo and eBay continue to integrate products and services.

By John Gartner at 02:30 PM | Comments (0)

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