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***Update on eBay.comís On-Site Advertising Strategy***

September 24, 2007 | 11:01AM PST/PT

Steve Hartman
Hi everyone...I'm Steve Hartman, the Director of On-Site Advertising for eBay. My team is responsible for the ads that show up on eBay.com and I'm here to give you an update on our progress and future plans.

From the beginning, we've approached on-site advertising with the belief that displaying some types of ads to the right people at the right time would benefit buyers by providing them with greater opportunities to find what they were looking for. By satisfying needs this way, we add value to the overall marketplace and further establish eBay as the first and best place to shop.

Our findings so far
There are different reasons people use eBay. Some come to browse, buy, sell, and connect. Others simply come to research or have fun. The testing we've done has helped us better predict when providing advertising actually helps as part of these experiences.

Today our strategy is to identify when people are most likely to buy or bid, so that we don't display ads that are likely to put potential transactions on eBay at risk. In addition, we're working with our advertising partners to show ads that are more relevant, so that their presence truly enhances the buying experience. Analysis to date has shown that this approach to advertising does not get in the way of people who intend to buy or sell items on the site.

Make no mistake Ė above everything else, we want buyers to transact on eBay. But we also want to offer alternatives when we believe it will improve the buying experience. Our advertising efforts have shown no significant impact to our core transaction business, and subsequently to our sellers' revenue, which further convinces us that we are on the right path.

Let me also say that while we are encouraged about our findings to-date, we have more to learn. I'm sure that everyone can come up with an example of an ad on eBay.com that was not "beneficial" to their user experience, and, yes, I've seen a few of them myself. To that point we're continuing to try new and improved ways to show the right ads in the U.S. And globally, our other sites are developing their own approaches to advertising that meet the unique needs for their markets.

Sincerely,

Steve Hartman
eBay On-Site Advertising Team

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