EcommerceBytes-NewsFlash, Number 2466 - January 27, 2011     4 of 4

eBay Ramps up Advertising on Its Marketplace through Third-Party Agreement

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eBay will use an outside firm to sell and serve up ads on its marketplace and will embed ads into the site to avoid driving shoppers off-site. Triad Retail Media will manage all on-site display advertising for eBay.com and eBay Motors.

eBay said the ads will be more relevant and customized, and it will use Triad to create sponsored landing pages on eBay that will highlight seasonally relevant and interactive content, and inspire new purchases through integrated merchandising with eBay listings.

The move will further disenfranchise small sellers unable to afford sponsored landing pages to drive traffic to their listings. According to the announcement, Triad will "create new ways for leading brands to connect with eBay's sellers and shoppers." Triad currently works with brands including Disney, Ford, Hasbro, Hallmark, Sony, Nintendo, Samsung, Toshiba, Purina, Maybelline, L'Oreal, P&G and Unilever. Retail clients include Walmart, Toys R Us, Barnes & Noble, Sam's Club and Dell.

At several points in its history eBay allowed smaller merchants to advertise on its site through AdCommerce, but discontinued the pay-per-click advertising program for the second time in the U.S. and Canada in August 2010. eBay is discontinuing the AdCommerce program internationally effective January 31st.

Vice President of eBay North America Christopher Payne, who joined the company through its acquisition of Positronic, told the Wall Street Journal that eBay had quietly removed about 90% of display ads over the past 12 months "because we thought it was destructive to the buying experience."

He said eBay and Triad would develop marketing campaigns around top level fashion brands, auto makers and electronics manufacturers.


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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