Does Ebay Love Adwords?

Ebay is complaining/ researched that Adwords actually does nothing for their company. In fact, they state that it costs too much money compared to the alternative- free.

Their theory is that people who click on Google Ads click on advertisers that they already know. So if they were looking for “old bikes” they click on Ebay to find them. But Ebay states that using SEO they could get into the top search results anyway for nothing.

Google then came out with their research which states that:

“…its own research suggested there was a significant increase in clicks as a result of search advertising.

But a company representative added: “Since outcomes differ so much among advertisers and are influenced by many different factors, we encourage advertisers to experiment with their own campaigns.”

Now who is right and who is wrong.

No one is right and no one is wrong. Both are very true statements.

It is perfectly true what Ebay states. But ultimately Adwords is not really supposed to be used to find company names as such.

It is supposed to level the playing field so that smaller companies can compete. If Ebay dominated the search results for every sellable item (which is quite possible) Google search would be useless. So now Google has problems.

But with Adwords the dynamics of it dictate that the more clicks that you get the higher in ad placement.

If Ebay is so confident then it should stop using Adwords and see what happens with natural search. I think they have some pretty big brains over there that munches piles of data to see what money comes in and where the money goes to throughout the company.

Ebay just doesn’t have a free/ cheap way to attract new consumers to its website without using search. And if it wants to corner the market in every instance of search then the laws of Adwords means that it has to pay.

In all cases of Adwords, Google sends you an email to say which ads were clicked on the most, keywords and if you used content for search, Google gives you the websites which brought you in those clicks.

Now Ebay could easily look at that and ask those lovely websites if they wanted to do a deal…cut out the Google middleman.

Adwords does work and works really well especially when you read up upon it and study it rather than go feet first. You have to figure out your CTR and the rate of return. How many clicks convert into sales/ newsletter subscribers or the X that you want from the advert. New music unknown artists selling their tracks don’t seem to work that well.

Then the ads have to cut down on the curiosity seekers- state that you have an ebook for sale, state that they have to sign up. Because if the customers gets freaked out on your site by seeing something that they weren’t expecting, they just click “back”.

So is Ebay sending traffic to its site in general or to individual auctions (which would be awesome to have especially for powersellers and they would pay for that privilege)?

If they are sending traffic directly to their site then the “click law” comes into practice. The more clicks from the advert to the desired goal the less the advert works.

For an experiment I checked out “canon XH A1 camcorder” in Google search. Why this camera? It appears as the top selling item in cameras for the day, with Canon cameras taking most of the first page in auctions.:

adwords camera

Ebay comes in 5 places below the top placment, which is the US Canon website. Oddly enough Youtube beats Ebay and Ebay beats Amazon in the search. The direct link from search goes to a vendor in Ebay who is using consumer reviews to boost onsite SEO.

The top placement for the camera in Adwords comes from Canon. But that directs you to a general webstore where you have to search again to find the camera.

The Ebay Adwords ad is right at the bottom, a generic ad (with no specific camera details, or camera anything) that leads you to the “camera” category auctions.

But you do have to ask yourself, if Ebay is higher in the listings than its advert, then why is it paying for a listing?

I think Ebay sellers are making a better website than Ebay is doing by themselves. Why doesn’t Ebay promote them more, help them with SEO using a subscriber service? Why doesn’t Ebay partner with Canon and get them to have an Ebay store at low rates- Canon then uses Adwords to promote its Ebay store- Google is effectively out of the loop and one more company is tied to Ebay.

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