eBay to Launch Contextual Ad Network

eBay is going to launch their own contextual ad network, which means they will be competing with AdSense, YPN, Chitika, and eventually MSN’s adCenter. Their “AdContext” product will offer publishers a chance to put ads to eBay auctions on their sites. Much like AdSense, an eBay robot will scan pages for context and then display relevant ads. Publishers will get 35 percent to 60 percent of sales, depending on volumes. One major difference between AdContext and AdSense is that AdContext will pay the publisher only when an actual sale takes place, not on a per-impression or per-click basis.

Because this is a contextual program, AdContext ads will not be able to be placed on the same page as AdSense or YPN ads. They can however, be placed on the same site.

I have a feeling that this will be a good program for certain types of websites that deal with consumer goods. Because of this, the program might be a bigger threat to Chitika then AdSense.

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