eBay recently posted ad revenues of $367 million in Q2 2023—a growth of 35% YoY—in its latest earnings. But much of that can be tied to innovation in its ad types, improved measurement capabilities, and expanded third-party ads. eBay’s market also gives it a retail media opportunity outside of consumer packaged goods (CPG). Let’s break down what eBay is doing right.
Innovation: eBay Ads boosted revenues through tech improvements.
Measurement: eBay ads also introduced a form of halo attribution, where the company takes credit for ads that drive a purchase of a seller’s promoted items, even if it’s not the item a user clicked.
“We think [this] gives the sellers a much clearer view of the value of the advertising and the return they’re actually getting on it,” said Kazim.
Market: “We don’t focus on CPG, and so we have a kind of a different advertiser base. We do have large brands who sell directly on the site, and for them, this is performance marketing and direct response,” Kazim said.
eBay Ads has found the most retail media success with parts and accessories, fashion, home, garden, and electronics.
Third-party sites: eBay Ads purchases placements on behalf of sellers as part of its overall transaction feed, with ad placements currently on Google and expanding to Bing. This helps sellers drive traffic from outside of eBay, Kazim said.