eBay will allow sellers to advertise on its website in a new keyword ad program that will compete with its program for Shopping.com listings and Yahoo Ads. eBay AdCommerce is a pay-per-click system that allows eBay sellers to advertise their listings and eBay Stores via a text ad on eBay search result pages. The system works like other ad networks, with advertisers bidding on keywords.

eBay had a program that it dropped 2 years ago called the eBay Keywords program. Under that system, ads appeared at the top of eBay pages rather than at the bottom of the search results pages as the new program does.

AuctionBytes followed up with eBay Powerseller Gary Richardson who had used the old ad program and asked him for his reaction. "Once upon a time I would have been excited about a new ebay (PPC) Pay Per Click program, but now It makes no sense to pay ebay to sell your items and then on top of that pay them some more to not sell your items. The program is highly susceptible to click fraud by your ebay competitors due to the close nature of customer and competitor being in the same arena, unlike ads targeted and spread across the net. eBay AdCommerce only allows sellers to link to an eBay page. As you know, ebay does not mind profiting from fraud."

eBay will begin a 2-month test of AdCommerce placements with a small group of beta testers in the next few weeks and to be ready to open up the program to all eBay sellers afterwards.

See Related Story eBay Admits to Buyer Confusion over Offsite Advertising

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