eBay advertising & marketing assignments

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Few businesses demonstrated the unique benefits of the internet to newcomers as thoroughly as eBay, a highly profitable combination of peer-to-peer shopping network and traditional auction house which matches buyers and sellers in more than 40 countries around the globe. Anything legal can be bought and sold on eBay, from low-priced mainstream consumer products to the most obscure collectors' items or even the totally bizarre. Gross value of goods sold reached a new high in 2018 of $95bn, and the community includes more than 179m active users worldwide. The main eBay platform is partnered by a collection of mostly acquired online local classified advertising sites including Mobile.de, Gumtree, Kijiji, Marktplaats and others. In the 2000s, its impressive profit margins made eBay one of the world's most valuable internet businesses. One of the company's comparatively few missteps was its high-priced acquisition of VoIP pioneer Skype. Having failed to establish any meaningful synergies with its online auction business, eBay sold on a controlling stake in Skype that was later snapped up by Microsoft. Online payments service Paypal proved a more lucrative venture, contributing close to half of group revenues by the time it was spun off as a separate company in 2015. More recently, the group sold its successful ticket resale site StubHub to rival Viagogo for a lavish $4bn in 2019. The biggest challenge facing eBay now is how to reignite growth in the face of multiple rival shopping services - and especially the spectacular growth and successful diversification of Amazon - and a slowdown in traditional classified selling. Revenues for 2018 were $10.75bn with net income of $2.5bn. Those figures included revenues of almost $1.1bn from StubHub, later sold. Performance during 2019 slowed significantly, and the company has come under intense pressure from activist investors. Devin Wenig, previously president global marketplaces, became CEO in 2015, but departed the company abruptly in 3Q 2019. A permanent successor has yet to be named; interim CEO is Scott Schenkel, previously CFO.

Capsule checked 27th December 2019

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Adbrands Account Assignments tracks account management for the world's leading brands and companies, including details of which advertising agency handles which accounts in which countries for major markets

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Advertising expenditure for eBay? See ranking of Declared Advertising Costs

Who are the competitors of eBay? The main direct competitor to eBay in major Western markets is Amazon, which offers person-to-person selling as well as direct sales; Alibaba is an equally significant rival in Asia. There are numerous other rivals, either the online presence for established bricks and mortar retailers, or dedicated online-only marketplaces, or shopping services launched by other online-only companies. See Media Sector and Retail Sector for other companies.

Historical profile information for eBay

Recent stories from Adbrands Update:

Adbrands Daily Update 26th Nov 2019: EBay is quitting the ticketing business with an agreement to sell its resale portal StubHub to Europe-based rival Viagogo. The deal price is $4.05bn. The merger will reunite Viagogo's CEO Eric Baker with the business he co-founded in 2000. The two sites have a largely complementary fit: Viagogo is active primarily in Europe while StubHub sells mainly to North American customers.

Adbrands Weekly Update 25th Oct 2018: The UK arm of eBay has agreed to acquire local ecommerce site Motors.co.uk for an undisclosed sum. The business will be absorbed into eBay's Gumtree UK website to enhance its automobile sales operations. The vendor is US media group Cox, also the owner of Kelley Blue Book and AutoTrader.com in the US. The sale effectively ends Cox's involvement in direct-to-consumer car sales in the UK. Motors' last filed accounts showed turnover of £14m.

Adbrands Weekly Update 5th Nov 2015: In the wake of its recent spin-off of PayPal, eBay took the opportunity to divest its CRM and web development arm eBay Enterprise, selling that division to a consortium of private equity funds including Banneker Partners and Permira. The deal completed this week with a price tag of $925m. The business was created from eBay's 2011 acquisition of independent company GSI Commerce, which assisted third party retailers with the creation and management of their online sales operations. Following its sale this week, the CRM operations of eBay Enterprise were themselves sold on to digital agency Zeta Interactive. Most of the remainder of the company will continue to trade as eBay Marketing Solutions, although it is entirely separate. It has negotiated a license to continue using the eBay brand.

Adbrands Weekly Update 24th Sep 2015: Ads of the Week: "Shop A Song: Tik Tok". Goodby Silverstein has an immensely entertaining campaign out for eBay, in which various songs are illustrated by way of the multitude of objects to be found on that extraordinarily diverse ecommerce site. Here's Ke$ha's Tik Tok. Some very witty juxtapositions of lyric and object, though you may need several replays to work them all out. Someone had a lot of fun planning the sequence of edits. More spots over on our Facebook page.

Adbrands Weekly Update 2nd July 2015: PayPal set about strengthening its position ahead of its spin-off from eBay, expected before the end of this month. It agreed to acquire money transfer competitor Xoom for $892m. Though it's headquartered in San Francisco, Xoom has a strong presence in developing markets such as Mexico, India, the Philippines and China, whereas PayPal is mainly concentrated at present on the US and the UK. Xoom will continue to operate as a separate brand, run by current CEO John Kunze. It reported revenues of $159m, on transaction volumes of around $7bn.


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