Online marketplace eBay is planning to launch an in-app mobile advertisements on devices such as smart phones and tablets with an aim to move the e-commerce company into profitable market for ads.
The move is being taken in order to improve the profitability of the company, since Advertising has much higher margins than online retail. Berkshire Hathaway’s insurance unit Geico is among the first advertisers on its mobile ad network.
Currently, it is working with Triad Retail Media to place the advertisements, as per a Reuters report. eBay’s users spend 150 minutes on its app per month, but the move risks drawing people away from eBay’s site.
“If users respond to (the mobile advertising), we’re not so brittle that we think that’s going to destroy their relationship with eBay,” Howard-Sarin eBay’s head of display advertising in North America said. “They’re going to come back as soon as they’re done and we’re not afraid of that.”
Launched in 1995 in San Jose, CA by founder Pierre Omidyar, eBay connects millions of buyers and sellers globally in the online marketplace, utilizing PayPal to ensure secure transactions. It is having presence in more than 1,000 cities and operates ticket marketplaces such as StubHub and eBay Classifieds sites. It had secured USD 6.7 million in a undisclosed round before it went public in 1998. The firm had made investments in 25 companies and has acquired 48 companies, till now.
Recent Updates: The company had invested USD 133 million in Delhi based Snapdeal in February, 2014.
eBay had acquired Braintree last year for USD 800 million in cash, in order to expand PayPal’s mobile payments capabilities, which were projected to be of more than USD 20 billion that year.