March 13, 2013

eBay's Online Ad Strategy

eBay's online ad strategy.

eBay Motors Ad

eBay App ad

Ray Fisman in HBR saying eBay is no longer running paid search ads (or brand ads) online. 
Overall, there was no appreciable decline in sales of eBay listings in the part of the country where Google ad purchases were shut off. People who thought to buy guitars via eBay were finding their way to the site anyway, either by clicking on natural listings, or by going directly to eBay's site without using a search engine at all. Search ads did generate a modest increase in the likelihood that internet surfers with little recent history of eBay transactions would end up making purchases on eBay. So paid search ads serve an informational function, letting a sliver of potential eBay customers know that they're in the guitar business. But by the time you get to customers who have had three prior eBay transactions in the last year, the effect of paid search on sales drops almost to zero. Overall, paid search turns out to be a very expensive way of attracting new business
Perhaps eBay is finding better returns on mobile ads (above), which are active.

And, perhaps eBay hasn’t figured out how to run their campaigns for best returns. They could take notes from Priceline and Expedia who seem to getting great returns from online ads.

Tags: ebay ads, ebay marketing online, ebay online ad strategy