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eBay Plans to Roll Out a New Mobile Ad Network this Year

eBay Plans to Roll Out a New Mobile Ad Network this Year


eBay Plans to Roll Out a New Mobile Ad Network this Year

eBay Plans to Roll Out a New Mobile Ad Network this YearThere is no stopping eBay from launching its planned advertising network through its mobile app in the fourth quarter of this year. This new mobile advertising network is expected to be a new source of significant revenue for the e-commerce firm. This is because it would be a marketing avenue to reach out to more than 4.6 million visitors who use the app daily.

eBay thinks that this would open a new and better opportunity for marketers and advertisers. In a statement, the company disclosed that eBay users, on the average, spend about 150 minutes using the app each month. That is much more compared to the 47 minutes for an unidentified and nearest competitor.

The company said it could place ads across different mobile devices, which would include smartphones and tablets. It would collaborate with Triad Retail Media for the placements of the ads. Total ads revenue from the operations would be split between the two.

Natural advantage

This planned network is expected to help various marketers in more accurately targeting advertising as the app requires logging in. It would be an advantage that eBay basically knows everything about its users’ activity when using the app.

eBay emphasized that it knows what its users have bought, what they are looking for, and what they prefer to purchase. In short, it said it knows exactly who its users are, which could be an advantage for relevant targeting of ad placements.

Not without a risk

However, although it could be another revenue source, some analysts warn that it could also be a risk to eBay. The new mobile ad network could turn off loyal eBay users who may dislike the idea of seeing ads often and being targeted for advertising efforts.

But for eBay, advertising could be a better source of income as it generates higher margins compared to actual sales of goods. This early, eBay disclosed that the Geico insurance unit of Berkshire Hathaway is set to be among the first advertisers.

This in-app ad network would be rolled out worldwide later this year. It would be exclusive to the eBay app and would not include eBay’s unit PayPal and the company’s other apps.

About James Humarang

James covers technology, gadgets and gaming news.

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