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>.
Interesting!! So they are "leaving" the app market, but coming out with their own apps?
ReplyDelete-Heather Roberson
I think it was a good idea to get rid of advertising using inside mobile apps. It does get annoying seeing all those advertisements when I'm trying to use an app. Ebay definitely does not need this strategy for marketing, since they became know even before apps started being used.
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ReplyDeleteI think many of us are in unison of the idea of eliminating advertising on mobile apps. I know on my StudyBlue app there are constant advertisements that sometimes prevent me from even typing in a word because the advertisement is so large. I think Ebay is correct in not trying to hard to get revenue from ads, but instead focus on its repeat loyal customers. If I am annoyed with advertisements I may not use that company again. I believe they will continue to make a large enough profit to stay in business even without the advertisements.
ReplyDeleteI know many companies claim to value their customer experience so much, but this is one of the only real examples that I have seen of a large company doing something to ensure that the experience remains a positive one. I think this speaks volumes about the company and their priorities and it makes me want to associate with them.
ReplyDeleteWhile I do not use Ebay, and perhaps I should, I find this awesome! Agreeing that there is nothing more frustrating than having an ad cover most of the screen. In the ease and convenience of having internet access anywhere via mobile, companies do need to keep in mind the view (which is a tiny screen, in comparison to a computer). I wonder if other companies will follow suit, since now more than ever, consumers are able to give feedback on a substantial level.
ReplyDelete-Mary Alice
This is a great move on eBay part. I personally shop frequently on eBay and have tried their app but quickly stopped because of the advertisement. There is nothing more frustrating than having something constantly sold to you. It is smart on eBay part to refocus the app to what it was initially designed to do and that is help people buy what they want, after all that is what eBay is suppose to be a market place and not an advertisement agency. I am definitely going to give this app another try.
ReplyDeleteI agree I also stopped using my app due to the interruptions of advertising. It was like every time you moved to a new page there was some sort of advertisement to be seen. I think Ebays's move to get rid of these advertisements will help them gain some of their loyal customers back.
ReplyDeleteI love this. They actually have the customer in mind here as well as usability! I wish other companies that already have income would reduce or do away with advertising.
ReplyDeleteI definitely support this drop in app advertising. Ebay is about buying and selling from C2C so they really shouldn't be concerned about money making from advertising if it is hurting the consumers overall experience. I strongly support this decision. With that said I have the Ebay app on my Ipad, and did not notice any advertisements the last time I listed an item for sale.
ReplyDeleteI completely agree with all the people that posted! In Ebay focusing on its loyal customers, its gained respect in that they dont want their users to be constantly bombarded by advertisements! It can completely steer me away from wanting to visit certain websites knowing that I will be attacked by advertisements! Thanks ebay!
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