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Article

Title: eBay Takes On Big Ad Players

Author: Tode, Chantal Article Type: Company
Source: DMNews, v29 n25 p1(2) Publication Date: Jul 9, 2007
  ISSN: 0194-3588
URL of Publication: http://www.dmnews.com

EBay is growing beyond its auction website with the launch of Kijiji in 220 cities in the United States. The move puts eBay in direct competition with Google and Craigslist. Kijiji is a free classifieds site similar to Craigslist. Previously, it was only available in around 20 countries and 300 cities. For it to succeed in the U.S., Kijiji will have to contend with Craigslist, the leading classifieds site in the country. EBay holds a 25-percent stake in Craigslist, and it intends to continue to hold on to its investment and relationship with the site despite the launch of Kijiji. The launch of Kijiji came after eBay decided to boycott Google AdWords and purchase AdWords in smaller numbers. EBay is also expanding into the comparison shopping business through Shopping.com. It will also go into ticket sales with StubHub and into web store development via ProStores. Kijiji operates as a free service, although eBay may change that eventually. In some countries, Kijiji charges $1 for ad placement. In the meantime, eBay is working on building the brand through word-of-mouth campaigns and direct marketing. Analysts are optimistic about the prospects of Kijiji as there is a huge market for services that eBay's core service is not currently addressing.

Companies:
eBay Inc

Products:
Kijiji

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