In the latest 2019 Q2 Investor call it was revealed that eBay Promoted Listings drove $89 million of revenue, up over 130% from a year ago, over 940,000 sellers promoted over $250 million listings in the quarter. eBay say that sellers are increasingly choosing to invest in eBay Promoted Listings and are seeing strong conversion and velocity.
We’d put a slight question mark against the “choosing to invest in eBay Promoted Listings – it’s rapidly getting to the stage where if you choose not to invest you will be giving up the top spot in search to a competitor. We’d still like to see eBay implement a policy where if your listing is the top spot in natural Best Match search results AND you have the top spot in eBay Promoted Listings than they hide the eBay Promoted Listing and give buyers the best experience without stinging you for additional money. Just because the buyer clicks the top (paid for spot) rather than the second listing you shouldn’t have to pay an additional fee – you’re still paying the normal listing fees after all!
eBay say that they plan to expand eBay Promoted Listings capabilities further while balancing the impact on the buyer experience. They expect to end the year with more than $700 million in total eBay Promoted Listings ad revenue and are well on track toward their goal of $1 billion in ad revenue over time.
There are two ways eBay are expanding promoted listings – they buyer side as the become ever more confident that they aren’t cannibalising the buyer experience and on the seller side by opening them up to more sellers. For example on the buy side eBay are adding eBay Promoted Listing in more areas such as on Product pages and on the sell side there are new tools such as the ability to volunteer to pay more for an ad in the sell your item form.
eBay say that they are also giving sellers better data so that they can understand and calculate an ROI on their ad spend on eBay. One interesting comparison to make for those sellers who also use Amazon Sponsored Product ads is the costs – currently a quick calculation of eBay’s revenue suggests that eBay Promoted Listings pound for pound compared to the returns are cheaper to run than Amazon Sponsored Products – let us know what your experience is.
This week at eBay Open eBay say that they’ll be sharing more about the future of ads.