|Thu Jan 31 2019 14:54:40|
eBay to Launch CPC Ads as It Seeks Revenue
By: Ina Steiner
eBay is planning to launch CPC ads for sellers who are willing to pay extra to promote their listings. eBay currently offers sellers Promoted Listing ads
based only on a CPA model (cost per acquisition).
It's an important distinction. While sellers currently pay for eBay Promoted Listing ads only when ads result in a purchase, the CPC (cost per click) model would incur costs any time a shopper clicked on an ad, whether or not the shopper actually purchased the item.
eBay CEO Devin Wenig told Wall Street analysts on Wednesday that there was a demand for a CPC model, particularly for brands. "There's been demand for a CPC model to go along with the CPA model, and I would expect at some point during the year, we'll roll out a CPC model - for brands, in particular - to complement the CPA model."
The CEO also said eBay was planning to add API access to "first party" ads for larger sellers who don't use Seller Hub.
"The eBay algorithm should fully understand how to maximize every pixel on the screen," Wenig added, "and that's where we're moving to."
The CPC advertising model is not without risk. We recently heard from a seller on Etsy, which offers a CPC model rather than CPA. She had never used search ads before, and when she turned on the Etsy Promoted Listings ads
on her account, she didn't realize it was set to a $200/day budget.
While some people might not be sympathetic, she made an interesting point: "Nobody would extend me that kind of credit," she said. So why would Etsy? Her case wasn't the first time we heard from sellers who ended up with high bills by accident. And just this week Etsy Promoted Listings experienced a glitch
that impacted sellers, highlighting the fact these are not set-it-and-forget-it programs.
Let us know what you think of eBay Promoted Listings and if you'd be willing to try a cost-per-click model on an online marketplace.
Update 2/1/19: eBay is running a promotion on Promoted Listing ads, see today's Newsflash article for details.