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eBay vs. Google: eBay AdContext contextual ad network set to launch

The launch of eBay AdContext, a contextual advertising network.

Michael van Swaaij, eBay’s Chief Strategy Officer, announced the launch of eBay AdContext, a contextual advertising network, at the eBay Developers Conference 2006, underway in Las Vegas.

The eBay contextually relevant ad system will work as follows, according to Reuters reports:

It plans to provide hundreds of thousands of eBay auctioneers with simple snippets of code they can embed on other Web sites that showcase items that are for sale on eBay's site...system scans the text of a Web site for keywords and returns links to relevant eBay sales listings to the Web page. A Web site about sports could automatically feature links to sporting gear or memorabilia available on eBay. As listings change on eBay, advertising automatically changes on affiliated Web sites to reflect the new products or services for sale on eBay.

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One major difference between Google’s AdSense and the new eBay AdContext, is that eBay will apparently be disclosing its revenue share payout schedule with its publisher network partners: Web site affiliates will reportedly receive a cut of 35 percent to 60 percent of sales, depending on volumes.

UPDATE: