Wednesday, February 14, 2007

EBay to Boost Yahoo ads Despite Fears

It looks like eBay will be expanding their Yahoo paid search deal to include regular search items. In fact I recently came across a search that had ample product on eBay as well as 5 paid search links to sellers off ebay. According to CFO Bob Swan the "The online auctioneer has found few conflicts between these ads and traffic to existing sellers" Swan was speaking at a Merrill Lynch investor conference in New York. Here is the story from Reuters.

When eBay announced in the summer of 2006 that they would be serving up Yahoo paid search ad's with null searchs it caused quite a stir among sellers. Sellers aren't even allowed to link to their own websites from their "paid" listings why should ebay link off the site to other vendors. Based on eBay's track record, be prepeared to see Yahoo paid search on a every search served up on

Now, let us think logically for one moment about the effect on eBay sellers. Mr Swan states eBay "has found few conflicts between these ads and traffic to existing sellers" First he did not say "no conflicts" so obviously there have been a measurable amount of problems. The only way for these links to have an impact on a seller is for a buyer to click on them and leave the site. So if they are at the bottom of searchs the likelyhood of a customer clicking on them is limited but if eBay was not getting click thrus they would not be expanding the program. Therefore, buyers are clicking thru and leaving the site. Maybe this doesn't affect current sales for sellers but it does put pressure on sales growth therefore impacting their upside.

My suggestion! If you currently have an off eBay website do some keyword research on eBay and develop a Yahoo Paid Search campaign. You only pay if a customer clicks thru and if you can't sell them on eBay you might as well get them at your webstore.

Just my 5 Cents! - Click Here for Some Great Resources on Online Advertising


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