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What is their reasoning behind this strategy?
Do you think that eBay is getting large discounts from Google on their campaigns?
Also, they seem to be driving up the costs for everyone in just about every category they're in. How is everyone else handling this? Let them have the premium positions?
The way I see it, some people just aren't going to buy from eBay, regardless. They don't trust the whole transaction process and are suspect of dealing with mom and pops.
It seems that eBay is bidding just about every word in the dictionary without rhyme or reason. They can't be looking to maximize their profits using this strategy as I'm sure that bidding on the actual word 'widgets' does not generate a lot of ROI.
Jmez, just wanted to make sure that you were aware that many of the ads you're seeing are probably from affiliates of eBay, rather than eBay itself. If an advertiser is an affiliate of eBay, they must identify themselves as such with the word 'affiliate' in the ad - often abbreviated to 'affil' or 'aff'.
Since I don't know exactly what you've seen, I may be mistaken of course. But thought it worth posting about the distinction between eBay and eBay affiliates.
Try searching for idiots on google, 'ebay has loads to unload' :)
After a while, people will treat the ebay ads as spam.
They measure a campaigns success by new user sign ups and their subsequent activity (using, as far as I've heard, very sophisticated methods)- not on straight conversions.
I would hardly call eBay as being very sophisticated in tracking conversions. They are one of the very few companies that cannot find which marketing channel got them the sign up at the time of sign up and in fact end up reversing more than half the registrations due to this issue. Check out the affiliate forum on the eBay site and this will be one recurring rant from their affiliates.