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eBay to Test Online Advertising Auctions

According to Reuters, online marketplace eBay Inc. is set to unveil a keyword advertising system for eBay sellers to promote auctions on other Web sites, borrowing from the strategies of Google and Yahoo.

Michael van Swaaij, eBay's chief strategy officer, told a conference of software developers that eBay plans to allow Web site affiliates to run contextual ads for eBay auctions in exchange for a cut of the resulting eBay sales.

EBay's system differs from pay-per-click advertising systems offered by Google and rivals Yahoo Inc. and Microsoft Corp. by linking only to eBay auctions rather than serving as a generic advertising network.

In coming months, the program, dubbed 'eBay AdContext', will allow Web sites to embed simple snippets of code that can then automatically act to showcase items for sale on eBay's site, eBay officials said.

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