Boston, MA 09/12/2014 (wallstreetpr) – Considering the fact that consumers are shifting more towards mobile devices like tablets and smartphones, eBay Inc (NASDAQ:EBAY) announced that it will kick off advertisements on the mobile app from fourth quarter onwards. The company plans to make eBay a rapidly growing and highly attracted e-commerce market for ads on aforesaid devices.
eBay: A Much Loved E-Commerce App
According to Stephen Howard-Sarin, the Display Advertising Head of eBay Inc (NASDAQ:EBAY) in North America, the users of eBay spend nearly 150 minutes on the application every month, which is thrice the time spent on any nearest rival of the company.
He explained that advertisements will work better on the mobile app because eBay will be able to customize the ads due to universal and single login comfort for users across multiple devices.
Berkshire Hathaway Inc. (NYSE:BRK.A)’s Geico, the insurance unit will be among first few advertisers to show up on mobile ad network of eBay.
Increasing Mobile Ad Spending in the U.S.
According to eMarketer, the research firm for advertising industry; the ad spending for mobile devices in the U.S. has increased 83% from the previous year. In 2014, this ad spending amounted to $17.73 billion, in comparison to $9.69 billion in the previous year.
Even though advertising business will offer eBay Inc (NASDAQ:EBAY) much higher margin in contrast to retail, but the only risk will be that people might start getting agitated and repulse from the site.
But, in this context, Howard-Sarin says that the relationship that has been created between eBay and its users “can live on the blip or two.” He explained that in case a user responds to mobile ads, then eBay is not brittle to dwell on the point of destructing relation. The users, Sarin added, will come back once they are done.
In order to place these advertisements, eBay Inc (NASDAQ:EBAY) has shaken hands with Triad Retail Media.