Dive Brief:
- EBay is overhauling its advertising approach by building up its internal sales team at the same time it is ending deals with outside sales, per Recode.
- Another change for the e-commerce bidding site is it is ending product ads that link to outside websites in favor of ads that drive sales on the site.
- The retail giant knew it didn’t focus on advertising according to Bridget Davies, vice president and general manager for eBay Advertising North America, but it now no longer considers advertising an adjacent business and is willing to invest in helping brands drive sales on the website.
Dive Insight:
A number of ad world insiders see advertising on major e-commerce websites like eBay and Amazon as a logical place to spend ad dollars. The idea is if someone is searching for something via Google they might just be doing research, but if they are searching for the same product on an e-commerce site they are more likely about to make a purchase. As a result, an ad seen on the e-commerce site might be more impactful than an ad displayed during a search engine session. In fact WPP CEO Martin Sorrell recently described Amazon as a direct threat to Google for search ads.
EBay has evolved from its origins as a bidding website for used products. Less than 20% of its Q4 sales were used goods and auctions account for only 13% of sales. Now big brands like Toys R Us and Best Buy have dedicated store fronts on eBay selling new products. EBay’s new approach to advertising on its site indicates it understands the opportunity in improving the ad experience for brands.
As e-commerce continues to grow, more brands are looking to play in this space. A number have taken steps to build their own direct-to-consumer commerce solutions, a strategy that can help them retain existing fans. Advertising on eBay or Amazon could complement these efforts by helping brands appeal to potential new customers.