Ebay’s Plan to Stop
Advertising Inside Mobile Apps
Devin
Wenig, Ebay’s president of global marketplaces, has decided to stop advertising
inside mobile apps. He is quoted saying that, “It’s not worth it”. Luckily for
Ebay, the revenue generated from mobile app advertisement is not needed as
Wenig explains by saying “We don’t need the money”. Not many companies are in
this situation, which Wenig knows quite well due to his prior experience as CEO
of Thomson Reuters Markets. However, getting out of the mobile app market, Ebay still
plans on establishing a commanding presence in the app world, as it has already
accomplished with over 100 million Ebay app downloads in four years. This year
the company “expects to transact more
than $10 billion in mobile volume from its apps” (Duryee).
The reason behind jumping ship on mobile app advertising
lies with customer experience. Wenig explains that the user experience was not
as favorable as it could be, in large part due to the bothersome ads that took
away from the real issue at hand; buying and trading products online. In my
personal opinion, there is nothing that frustrates me more than an app covering
half my phone’s screen. Why sacrifice customer satisfaction for a slight
increase in revenue from app advertising? This is the dilemma facing many
mobile advertisers. It can be a double edge sword.
I believe the strategy taken by Ebay was an ideal one.
They experimented with app advertising without throwing all their eggs in one
basket. When they found that the ads were hurting their image as a smooth, easy
to use online trader they decided to exit the market and find revenues
elsewhere. I say well done.
Tyler Williamson
Duryee, Tricia. "eBay to Stop Advertising Inside Mobile Apps: “It’s Not Worth It."." All Things. (2012): n. page. Web. 5 Mar. 2013. <http://allthingsd.com/20121219/ebay-to-stop-advertising-inside-mobile-apps-its-not-worth-it/>.
Reed, Frank. "eBay Will Stop Advertising In Its Mobile Apps In 2013." Marketing Pilgrim. (2012): n. page. Web. 5 Mar. 2013. <http://www.marketingpilgrim.com/2012/12/ebay-will-stop-advertising-in-its-mobile-apps-in-2013.html>.