eBay: Another App Publisher Rejects Banner Ads
eBay says they will no longer serve banner ads in their mobile application. Why? Pretty simple, actually. They “found that they were distracting and cluttered up the smaller screens. The ads also didn’t deliver meaningful revenue”. – All Things D, eBay to Stop Advertising Inside Mobile Apps: “It’s Not Worth It”.
More specifically, Devin Wenig, eBay’s president of global marketplaces, said “We aren’t happy with the user experience and we don’t need the money.” – All Things D, eBay to Stop Advertising Inside Mobile Apps: “It’s Not Worth It”.
This should come as a surprise to…Well, no one. If it wasn’t absolutely critical to an app publisher’s business model (which it’s not for eBay), why would they ever risk losing customers to poor user experience? The better the user experience on the app, the more people will use it to shop on eBay. Until there is an “in-app” ad model that doesn’t negatively effect that experience, eBay is making the right decision to avoid display advertising altogether.
eBay has a huge opportunity to generate in-app advertising revenue by partnering with brands who bring value to their users. Then they just have to make sure those partnerships are presented in a meaningful, not disruptive way.