AdWords Tips

Dear eBay, Your Ads Don't Work Because They Suck

By Larry Kim March 13, 2013 Posted In: AdWords Tips Comments: 64

 

Do AdWords not work or is eBay bad at AdWords?

Does Google AdWords work? There’s a story making the news this week about how eBay supposedly wasn’t able to make paid search work for them so they stopped using Google AdWords. Ray Fisman, who wrote up the study for Harvard Business Review, said “Their findings suggest that many paid ads generate virtually no increase in sales, and even for ones that do, the sales benefits are far eclipsed by the cost of the ads themselves.”

I couldn’t help but laugh when I read this, and I’m sure many of you did as well, because it’s pretty well-known within the search engine marketing community that eBay is the butt of many jokes when it comes to adopting advertising best practices.

eBay is probably the world’s biggest abuser of an ad writing tactic in AdWords known as Dynamic Keyword Insertion or DKI. As its name suggests, DKI dynamically inserts the user’s query into the headline of your ad, as follows:

eBay Ads on Google, eBay fails at Google Ads

When used correctly, DKI can be a highly effective ad writing technique. But when employed in the way that eBay uses it, the results are disastrous.

Dynamic Keyword Insertion Run Amok

eBay’s AdWords strategy appears to be to pick every possible word in the dictionary and run them on Dynamic Keyword Insertion. For the last 10 years or so, they’ve been running ads on the most ridiculous things including stuff that doesn’t exist or stuff that is illegal to sell. Here are just a few examples:

Need a Perpetual Motion Machine? Shop on eBay and Save! Discount Perpetual Motion Machines!

Example of failed Google advertising by eBay

Feeling lonely? Need a wife?

eBay fail, lonliness ad, AdWords doesn't work for eBay

eBay sells your wife, eBay's AdWords ads aren't working

Or maybe you’re looking for love in all the wrong places?

eBay Paid Search Doesn't Work

Or how about some slaves or Bill Gates while we’re at it.

I could go on but I think it’s safe to say that if you’ve used Google in the last 10 years, you’ve come across a bunch of bizarre eBay ads that make absolutely no sense. So I can’t say I’m shocked that they finally realized they weren’t getting ROI from AdWords.

It’s Not AdWords, It’s You: The Problem with eBay’s Ad Strategy

The problem with eBay’s carpet-bombing ad strategy is that it’s doomed to fail. The way AdWords works is that they allow companies to pick what keywords they want to show their ads on.

Now to ensure that advertisers do a good job at choosing keywords that are relevant to their business (which is important because Google would prefer not to display stupid, irrelevant ads, which annoy users), they give you a discount on ads that have high click-through rates. The flip side of this is that they penalize lousy ads (like ads for slaves or loneliness, etc.) by charging as much as 10x more.

Furthermore, because your ads are so weird, if someone clicks on the ad and goes to the site – they’re not likely to find what they’re looking for (no perpetual motion machines in sight), and won’t convert into a sale. So eBay was paying a high premium for mostly worthless clicks.

These and other factors likely explain your study results. I’m sure Google LOVED your business, but of course you weren’t getting return on that misguided advertising spend.

Attention John Donahoe: I Dare You to Fire Your Ad Managers and Give Me a Shot

So eBay, I hope you can see that it’s not AdWords – it’s your dumb ads that are killing your account.

Success at paid search is possible but you’ll need to invest more time than just creating one universal ad template then jamming every keyword in the world into that one ad using dynamic keyword insertion.

I’ve been doing paid search for 10 years and have made it work for thousands of businesses, and I’m absolutely certain I can make it work for you, too. Here are a five free tips for you:

  • Be more picky with your keywords. Instead of bidding on hopelessly unspecific keywords like “baby,” choose more specific terms that show at least a little intent, like baby bottles, or baby stroller, etc.
  • Consider using Dynamic Search Ads – a new technology from Google that picks your keywords for you automatically.
  • Use negative keywords to prevent your ads from showing up on irrelevant searches. This could save you millions of dollars! No joke!
  • Use remarketing to target shopping cart abandoners. It’s a super-effective way to draw people back onto your site.
  • Grade your AdWords Account for Free

The first 5 tips are on the house. John Donahoe, your AdWords account managers are an embarrassment to your company and your AdWords account is in shambles. Call me and I’ll turn your Google PPC account around for you!

 

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Comments

Thursday March 06, 2014

seo (not verified) Said:

Dynamic Keyword Insertion is very helpful big campaigns with many keywords.

Tuesday February 25, 2014

Andrew Delville (not verified) Said:

It looks like someone in the eBay marketing department screwed up with this one!

Monday November 04, 2013

Vedran Koren (not verified) Said:

Excellent article. You just hit the core of the problem.

 

 

Wednesday May 22, 2013

Internet User (not verified) Said:

Ebay is so worried about making to much money, it is progressively going down hill in sales.

Their Tech Team is in way over their heads.

Their feedback System is a Legal Nightmare waiting to happen.

The Big Search Engines now days are Ad Related..pretty much useless now.

Rich Companies are to be avoided, exspecialy those that charge fee's at a high percent.

America is a bit tiered of paying some rich guy for not working. Freeloading Freeloaders

 

Wednesday May 15, 2013

Nathan Pabich (not verified) Said:

Some of those screenshots bring me back! Great article, and I can't agree more that DKI is not a good fit for everything. The biggest abuser I see currently in both my personal and professional searches now is Target. That's the problem when you want to sell everything - you may not do it well. Especially in this medium.

Friday April 26, 2013

Mark Stockton (not verified) Said:

Several companies do this. JustEat are my favourite culprits, they allow words such as "Manure" to be dynamically insert into their adwords adverts. Not sure I would want to associate manure with food...

Friday April 19, 2013

Anonymous (not verified) Said:

Google adwords plain and simple is great to make google money but it fails to make produce paying customers.

Google adwords sucks!

Wednesday April 03, 2013

Tim Fouracre (not verified) Said:

We did some analysis of Google Adwords when we realised we had spent a cumulative £100k since we started our SEM campaign.

The CPA has crept up over that time so it's definitely worth spending on ads as soon as possible particularly while your industry is in its infancy.... before it gets too competitve and expensive.

Lessons learned from spending £100k on Adwords.

 

Monday March 25, 2013

Yaron Lapidot (not verified) Said:

You found 5,6,...100 wrong search terms out of millions, this is drop in the ocean.

Managing such a huge campain, can't be done without a few mistakes or more.

I think EBAY's biggest mistake, is competing in search terms with a bad conversion rate.

If EBAY will focus only on the profitable terms, they will sell less but will earn more.

Less is More... :-)

Monday March 25, 2013

Luis (not verified) Said:

My question is... During 10 years and spending and huge ammount of dollars, the Google Account Manager couldn't suggest how to improve or work in the ads?

Saturday March 16, 2013

Jared (not verified) Said:

I've seen some of eBay's Adword ads and I have to admit they are pretty bad and you can see why they're not seeing a return from them

Sunday March 17, 2013

Rich (not verified) Said:

Great story.  Makes sense to me.  And, I laughed my ass off at some of the examples you gave.  

 

 

 

Monday April 15, 2013

Alan Mitchell (not verified) Said:

eBay's paid search ads are always making the headlines. Here's another humerous example:

http://www.semsamurai.com/2010/01/adwords-dynamic-keyword-insertion-fail/

I also think it's wrong for eBay to write of brand ads just because they didn't happen to make them work.

I've found 13 tangible benefits of bidding on your brand terms: http://www.calculatemarketing.com/blog/techniques/13-reasons-why-ebay-ar... .

I'm sure there are many more.

Wednesday March 13, 2013

Cynthia (not verified) Said:

Who ever said you can't buy happiness obviously hasn't tried searching for it on eBay. It's there, next to love and success.

 

 

Thursday March 14, 2013

Larry Kim Said:

it is the most bizzare adwords strategy ever.

Wednesday March 13, 2013

Philip Cohen (not verified) Said:

I would not bother applying for any job at eBay—they have no concept of competence ...

The ugly reality for consumers dealing with the clunky, manipulative, unscrupulous eBay/PayPal complex ...

"eBay-Facilitated Shill Bidding Fraud on eBay Auctions: Case Study #5" ... http://bit.ly/11F2eas
 

 

Wednesday March 13, 2013

dennisg (not verified) Said:

Are you kidding me. 

Those screenshots are really old, and must be picked from the Webarchives. Your five "free" tips are a joke, as these have been incorporated into the bidding algorythms for years.

I posted a response on the Inbound discussion here. But before you make claims that you would do better than the team at eBay, you should realize the story might be more than just marketing optimization. There might be more going on here, stuff you have not been exposed to...

Thursday March 14, 2013

Larry Kim Said:

Hi Dennis - thanks for the comment. just a few comments. (1) Quality Score calculations take into consideration historical performance of your entire account.  (2) while i don't know everything that is going on in the ebay account, we can infer that there are big problems with keyword selection ad copy.

 

also here are a bunch of recent ebay "top ads" from mid february this year that you can see are still leveraging DKI - http://www.ispionage.com/research/default.aspx?q=ebay.com&lc=1&type=0#ta...

 

Thursday March 14, 2013

Anonymous (not verified) Said:

I suspect ebay does not even have a conventional QS. Did you know there are Adwords accounts with 'averaged' or pre-scored QS? Bet you did not and probably will swear they do not exist but they do and the reality is ebay probably doesn't get a QS like you do.

 

Not to mention the terms you mention are retardedly small and have some to do with match types. Overall for products they probably crush it, their branded terms crush it, so to say their QS is low is cherry picking examples.

 

But I bet ebay negotiated their way out of QS a long time ago.

Thursday March 14, 2013

Larry Kim Said:

I've never heard of this but if they did have some pre-negotiated quality score and still couldn't make it work then double shame on eBay search marketing managers.

Friday March 15, 2013

Ionut Mircea Oprea (not verified) Said:

Dear Aggresive,

Dude take a breath of fresh air and be specific. I have never heard of pre-scored QS either (that is not to say it's not true) just that you haven't given an example and that takes away some credibility. As for the key words, it makes all the sense in the world to target long tail and specific key words for better QS (where you say "retardedly small" I say specific and optimised for conversion). 

 

Thursday March 14, 2013

Chris Zaharias (not verified) Said:

I agree 100% with dennisg. Larry, you've painted yourself the greater fool by saying SEM success is just about

using better SEM tactics, when the study is about attribution and is quite powerful in its findings. As someone who's been

in the SEM game even longer than you, I suggest you read all 25 pages of the research report, and I rather suspect

you'll change your looney tune.

 

Thursday March 14, 2013

Victor Pan Said:

Hey Chris,

You're a stats guy, and I respect that. I think eBay has a case of fundamental attribution error, and you can't deny that keyword targetting and ad copy were key variables left out of the analysis. Larry's point is still a very valid one once you look at eBay's choice of ads. 

eBay's study results should be viewed as a case study within eBay and not a model for other businesses.

Thursday March 14, 2013

Larry Kim Said:

How can anyone be a "greater fool" than the SEM marketing managers at ebay: http://www.vaughns-1-pagers.com/internet/ebay-ads.htm

not possible.

Friday March 15, 2013

Nick Danenberg (not verified) Said:

 

I'm not sure that Larry did say that SEM success (or, at least in this present eBay example) was solely about SEM tactics.

And to be sure there would be a number of other variables involved that are unknown to us outsiders, in fact unknowable by outsiders, that would influence their results and decision making.

But that does not negate the premise that improving SEM tactics would improve SEM performance / success. Of course it would! But would it improve performance enough to overcome the invisible 'hurdle rate' that eBay must work to in order to see a worthwhile ROI from SEM? Again, that is unknown to an outsider.

Using our Dynamic Creative software e-channel Search doubled eBay's pre-conversion metrics (Clicks, CTR) for eBay Deals Australia in a joint trial we conducted with them last year. 

This was achieved not though using DKI, but the insertion of more relevant information, like Price and Savings amounts into the ad. There was no access to conversion data or ROI, however, but certainly SEM tacttics were responsible for greater SEM success. Again, are such 2x improvements enough? Only eBay can know.

One other point to make is that there are other aspects to consider regarding advertising effectiveness and the measurement thereof, when advertising at the scale of eBay. For instance, the salience, reminding aspect of advertising (like TV or outdoor) that support a large base of sales, which has a substantial *inertia* component. ie Coca Cola's sales wouldn't immediately drop if it ceased advertising. Measuring the incremental effectiveness of individual campaigns over the short term could lead them to make sub-optimal decisions in the longer term.

Thursday March 14, 2013

Jim Banks (not verified) Said:

Great article Larry. Good luck with the account if you win it.

My issue often as a competitor of eBay is they never seemed to factor any of the normal points that advertisers look at.

It was like "those rules don't apply to us", which as we all know was never going to be the way Google operated and QS and all the other factors were going to matter just as much to eBay.

Market conditions, competitor landscape, ad variation, none of these seemed to apply to eBay.

It's almost like their strategy is to be #1 on the side ads using the same format title/description no matter which category it is in and day of the week/time of day.

They must be sitting on petabytes of data which should allow a much more granular campaign.

I get that with the scale trying to be as detailed as other advertisers may not be possible, but I'd say that over 70% of the keywords they use even get an impression, never mind a click.

I use a service called Terapeak which shows me all the successful auctions, title's/description in each of the markets eBay operate in.

You can see product research, competitor research, category research, what's hot. It color codes the sales volume by category, so I don't understand why they don't use that data as a means of generating a sensible robust strategy.

We won't be changing their strategy, but at least we know what we are dealing with as a competitor.

Thursday March 14, 2013

Nick Stamoulis (not verified) Said:

Hey Larry,

Great article and so very true!  It is amazing to see Ebay bid on everything with poor ads as you pointed out.  Often times I see Amazon as a huge ofender in bidding on everything,  but their ads and targeting seem very good.  Any thoughts to look at Amazon's PPC program?
 

Thursday March 14, 2013

Larry Kim Said:

amazon started out with a carpet-bombing strategy like ebay but later evolved to be more targeted / relevant.

Friday March 15, 2013

Aaron Levy (not verified) Said:

My understanding was this was primarily because of Amazon's affiliate policy. In the past, they let affiliates/associates bid on whatever they wanted. Folks would bid on anything under the sun to get clicks & drop their cookie, assuming that a person would someday buy. Once amazon dropped the policy, their ads cleaned up.

 

 

Thursday March 14, 2013

Damian (not verified) Said:

it's at least slightly ironic that the company that pioneered one bidding algorithm couldn't get its head around another

Thursday March 14, 2013

Larry Kim Said:

when i explain keyword bidding to new clients / people i use ebay as an example (lol).

Thursday March 14, 2013

Andrew Goodman (not verified) Said:

We worked for a division of PayPal once. Did a great job. :)

It's clear that what eBay should be doing is cherrypicking a smaller volume of better-performing, better-managed inventory.

I was never convinced that, even if it were well-priced, that the endless DKI advertising was helping eBay's brand. Rather, it seemed to me it was hurting it, given that everyone already knows about eBay.

You're right to point out that Quality Score issues must be seriously driving up the ad cost.

Unless Google had been manipulating QS for eBay's benefit, and every now and then there is a dispute, which is essentially over money and favorable treatment, and then eBay makes a big show of "pulling" its ads.

I'll leave it there... maybe that's the "stuff we have not been exposed to"... of course Google and eBay are frenemies, so it's a bit like the case of how unbiased can Google really be in ending free product feed referrals when Amazon -- a sort of competitor -- was the biggest beneficiary in the past.

If Google has the power decide the prices their direct competitors pay for ads, that's a problem! But that's precisely why you need to know how to fly under the radar somewhat. And tactically, it's important to build a diversified, "anti-fragile" digital lead gen portfolio.

 

 

Thursday March 14, 2013

Bogdan (not verified) Said:

This would have been a great article if the screenshots were not outdated.

In the first one, where you are searching for "baby", you can see Froogle in Google Search's menu, a product which has been renamed in 2007. On top of that, the screenshots don't have a consistent image, which leads me to think they are copied from some old internet archive.

Nice try, Larry Kim!

Thursday March 14, 2013

Larry Kim Said:

have you really never seen dumb ebay ads for buying "dead popes" or other ridiculous things?

 

Thursday March 14, 2013

Larry Kim Said:

Hi Bogden, take a look at this recent crawl of ebay Ads from Ispionage: http://www.ispionage.com/research/default.aspx?q=ebay.com&lc=1&type=0#ta...

(or use spyfu or keyword spy, etc.)

You'll see that there are a bunch of strange ads for "childlife sandbox", "keyword bible", "spy bug", etc. The date of the ads are February 18, 2013.

Thursday March 14, 2013

searchengineman (not verified) Said:

Cough..Cough..

Before you jump on Larry's thesis... I think we've all seen wierd E-Bay Ads dated or not.  But also remember
Larry (Wordstream) is the same guy who sucked back..almost 1% of Adwords keywords activities
and reported the activities..to us. (Thank you) .. so he may know what he's talking about...

A simple check in say keywordspy could more than verify...wonky Ads.  Out of curiosity I wonder who exactly was the man
(company-ies) behind the curtain..running that Adwords campaign?

Because the scary thing is they're probably running other Fortune-500 companies, into the ground.
 

Searchengineman

 

Friday March 15, 2013

Anonymous (not verified) Said:

My suspicion is the Ebay is less at fault here than their (terrible) agency. Of course eBay should have been letting them go for lack of performance, but we don't know what other businesses they are partnering in together (the agency might do a great job in other aspects of the marketing spent, who knows).

So yes, I would love to know who that agency is :)

Thursday March 14, 2013

Eloi (not verified) Said:

Ebay (and Ask.com) have been for the past 5-6 years the prime examples of what not to do in SEM.

Bad tactics, bad overall strategy, no taking advantage of new features and the most perfoming tools in the arsenal ... This is why nothing happened when they turned it off in a third of the country. They had a really bad performing campaign to start with.

Thursday March 14, 2013

Larry Kim Said:

i'm mostly surprised that it took them 10 years to figure out that their campaigns weren't producing ROI.

Thursday March 14, 2013

Eloi (not verified) Said:

indeed. I have a feeling the marketing budget was (bluntly) split by channel, and not by performance.

Thursday March 14, 2013

Andrew (not verified) Said:

I think the larger issue with eBay AdWords, is users already know what to expect from eBay and that determines if they will click the ad or not. A lot of my friends and co-workers don't like eBay and think of it as a shady place for people selling out of their basement and wouldn't click and ad to eBay regardless of the ad's copy or specific relevance to their search. Personally, I buy and sell a lot of products on eBay, but wouldn't click an eBay ad. I would go to eBay directly in my browser instead of Google for certain product searches. I can say the same for Amazon ads and I'd go to Amazon directly if i wanted to see what they have for me. 

eBay (and Amazon) search ads may serve more as a reminder to users to go to that market place, rather than a "this is what you want and we have it". 

Thursday March 14, 2013

Claire (not verified) Said:

People who don't click the ad aren't the problem. People who click the ad and don't convert are the problem.

Thursday March 14, 2013

Ryan Jones (not verified) Said:

Did you even read the story? EBay said that ads for the term "ebay" that were clearly navigational didn't work for them in paid search.  Your examples are non-branded terms.  Two totally different things.  

Thursday March 14, 2013

Elisa Gabbert Said:

The report did NOT cover only branded keywords: "Second, the effectiveness of SEM for non-branded keywords is small for a large and well-known brand like eBay and the channel has been ineffective on average." This is in the 2nd paragraph of the introduction. See for yourself: http://conference.nber.org/confer/2013/EoDs13/Tadelis.pdf

Thursday March 14, 2013

Joe Preston (not verified) Said:

While I'm familiar with eBay's firehose techniques with Adwords, competed against them for years, I don't think their poor strategy has much to do with their published paper.

Ebay asserts that branded search terms aren't incremental when you have organic position on those queries. Of course, ebay may find that their branded queries are more expensive than a lot of other people's branded queries, because google is going to suggest "ebay shoes" to other people trying to buy shoe keywords. But, in any event, their study showed that when they had a high ranking organic result for "ebay <whatever>", it didn't move the needle to have the ad appearing on that page.

Second, they showed that their non-branded sales were really really low. I'm not sure why it took them a decade to figure this out, but they weren't talking about the efficiency of their buy on non-branded, but all they are saying is that the sum total of their non-branded ads are negligible in terms of producing conversions. This wasn't about the efficiency of the non-branded ads on ROI or ROAS, this was simply about how many transactions the advertising produced. 

I have always assumed, as you did, that eBay's advertising was monstrously inefficient, and they disclose in the paper, that they manage a portfolio of 170 million keywords, so no wonder. But, I have also always assumed that they negotiate some kind of bulk rate with Google on the DKI advertising they do, since it's a very large buy in what is, effectively, remnant space, so I suspect they have always been comfortable with the investment, which is why it took them 11 years to realize it was useless.

 

Thursday March 14, 2013

Mori Yagi (not verified) Said:

 

Yeah - the study published by ebay is thorough but is a little flawed in its assumptions, which are built around more traditional advertising principals related to demand generation.

“To interpret our results in light of the economics literature, consider the informative view of advertising, which suggests that advertising informs consumers of the characteristics, location and prices of products and services that they may otherwise be ignorant about.”

“Because eBay bids on a universe of over 170 million keywords, it provides an ideal environment to test the effectiveness of paid search ads for non-brand keywords. The broad set of keywords place ads in front of a wider set of users: anyone searching for queries related to millions of products and not just those searching specifically for eBay. Measuring the effects of the full keyword set more directly addresses the value of informative advertising because we can examine how consumers with different levels of familiarity with the site respond to advertising.”

This is a flawed assumption since search, even non-branded paid search, is not a medium that is used to generate demand or increase brand awareness, but is more aligned to harvesting existing intent. If they’re trying to introduce new users or under-engaged users to the eBay brand, they are using the wrong medium and strategy. If they are trying to reduce friction and time to purchase for users looking for a specific product sold on eBay, then it is an effective channel.

Also from what I know of search managers at ebay, they are pretty much stuck with their blanket strategy because they have to use TRITON, their proprietary management platform. I’ve heard it’s difficult and unforgiving to work with.

Thursday March 14, 2013

Matt (not verified) Said:

In addition to the entertainment factor within Larry's post, it's interesting to see how seriously people are taking this.  Does it matter if Larry's screen shot mockery is old news?  Nope.  The ads appeared at one time, and fully contributed to poor ROI.  The heart of the matter is that using a shotgun approach to Adwords is certainly not a profitable strategy no matter how large, or how small your business is...

Thursday March 14, 2013

Rolands (not verified) Said:

If the ads were old, it would be fair to mention that. Like me, I am more "end-user" than agency, and seems only one here between agencies and professionals, and for me it was not immediatelly apparent that ads in fact are several years old, until someone in comments told so.

Thursday March 14, 2013

P.K Bibi (not verified) Said:

 

Quite frankly I don't think most Google AdWords advertisers will shed a tear for eBay leaving.

On the contrary, the vast majority will be as chuffed as I am.

Their demise somehow levels the playing field for smaller players with Not so deep pockets.

Thursday March 14, 2013

Lynch (not verified) Said:

Very good article.

EBay definitely had a deal on the bulk advertising. No one surely is that stupid to pay the rates suggested. EBay get the corporate company discount. Not our sucker rates.

The Google AdWords model is fundamentally floored anyway. I see highly competitive keywords for products with profit margins of £3 with clicks of £1.20 to get on the first page.

Let start by saying Google is also flawed. They ask companies to develop models and SEO around their Algorithms. Over night they change the game. Asking people to spend the money again adapting to the new rules. Small businesses have no chance and you need a full SEO team to survive.

The bulk advertising could be called Blitz it could be called reminder advertising. Ok the ROI never worked for EBay but EBay do not need to advertise. In the same way Coca Cola does not need to advertise. We all know what EBay is. The ads are just a reminder that whatever you are looking for can be found on EBay.

Forget direct ROI! Profits are the final line.Those really bad ads are rarely clicked on but EBay gets seen. Think how many people search for "Love" but they know not to click on EBay for Love. Think of the sad depressed people who search for "Love" and see the ad and shop to make them self feel better.

Lets also remember EBay struggles in natural search for products due to duplicate products. I thought Google made the AdWords deal with them because they knew they would never meet their algorithm and would never rank well.

So the In your face advertising for everything you search for was the only option! Surprised they moaned about ROI. This made a mockery of their strategy which has lets face it worked in terms of the final company profits and brand awareness.

 

Thursday March 14, 2013

Erin Vezzetti (not verified) Said:

This has got to be one of the best posts I've read in a long time.

I can't count how often I've heard people shoot down marketing channels, ideas, or strategies that "didn't work for them", only to find out they weren't actually doing it right!

 

Thanks for this.  It really made my day, especially amid the firestorm they started about what is one of the most successful ways any of my clients have marketed themselves - Google PPC.

Thursday March 14, 2013

Larry Kim Said:

thanks for visiting, erin! I think ebay and harvard look very foolish.

Thursday March 14, 2013

Amy (not verified) Said:

Great post!!!!

Can anybody tell me how ebay has gotten away with this for so long?

I have had ads turned down for not being relavent in the past but come on.

Let me guess? Ebay has tons of money so no rules apply. No, that can't be it. Can it?

Thursday March 14, 2013

Larry Kim Said:

that is a good question. Google will run ads if the ad rank (bid * quality score) is high enough. maybe they were bidding very high on their ridiculous keywords.

Thursday March 14, 2013

Drew (not verified) Said:

Good points Larry.

I see you've received some flack from readers, so I can't weigh in as I haven't read the report yet, but certainly from the points you raise you can't be argued with that DKI at that magnitude without any controls or rational common sense (with a dose of advertising savvy) is ludicrous.

Love your posts and your software. Hope to connect on LinkedIn but you haven't accepted my invitation yet wink


Cheers.

Thursday March 14, 2013

Larry Kim Said:

Thanks for stopping by drew!

Friday March 15, 2013

Vishal (not verified) Said:

I had found this too funny, i mean comon there are other ways also where you can burn your money, but burning your money especially when you have all tracking, what is working what is not working.

Having tons of money doesn't mean that keep bidding on irrelevant keywords, have not seen any ecommerce company managing their accounts like this.

However its good learnign for other advertisers like us, to learn what not to do, while managing search campaigns

 

Friday March 15, 2013

TheNet (not verified) Said:

Maybe it's time webmasters penalised Google for once, Google often penalises sites with "poor content" but it's ok for them to do what they wish.

Saturday March 16, 2013

Melanie E (not verified) Said:

Hey Dude,

It's like Google always says...

"You can do what you want with your website, and we'll do what we want with our search engine."

Who says they don't play fair! LOL

Friday March 15, 2013

Anonymous (not verified) Said:

This article is one of the worst I have ever read. Makes complete sense from a sensationalist level but digging further into the details proves the author is a typical bluff and bluster prophet with no understanding of how large accounts actually work. Taking some random screenshots and using that as "proof" that eBay's SEM campaigns are bad is like finding a rotten apple in safeway's fruit section and then saying that because of this their business model doesn't work.

Friday March 15, 2013

Larry Kim Said:

thanks for this comment. funny i thought the ebay "study" was the sensationalist piece and would liken my article more along the lines of more like finding that everything is rotten in the fruit section -  show me an ebay ad that doesn't use DKI. even when i search for "ebay" the ad that used to come up said: "Looking for ebay. Find ebay on ebay". I think it's the ebay account managers that have no understanding of how large or small accounts actually work.

Friday March 15, 2013

Anonymous (not verified) Said:

Do you honestly think that a company as big as eBay, with their budgets and knowledge has never tested anything but DKI?

Monday March 18, 2013

Elisa Gabbert Said:

This is a logical fallacy known as "appeal to authority." Just because eBay is a big company doesn't prove that they know what they're doing! After all the Roman empire failed.

Wednesday March 20, 2013

Rob Burns (not verified) Said:

I completely agree with your comments here. 

I was also disappointed to see that the story came out in the media as "Ebay says Google Adwords doesn't work." 

It's more correct to say that "Ebay says Google Adwords don't work for Ebay."

There's a big difference!

And that's before you start questioning how Ebay runs its Adwords campaigns.

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