PayPal is building an advertising business that will leverage the data it collects on consumer purchases and spending habits.
What is happening? The digital payments giant plans to create an ad network that will allow merchants and brands to target PayPal’s roughly 400 million users with personalized promotions and ads based on their transaction histories.
Why we care Advertisers should be interested in this because PayPal has a wealth of purchase data from 400 million users, so this could mean sophisticated targeting and advertising across multiple channels (as Paypal plans to run more ads beyond their platforms) from a platform.
Key hires.
Mark Grether, previously head of Uber’s advertising business, hired as vice president of PayPal’s new PayPal ads division to develop ad formats and build the sales team. John Anderson, previously Head of Product/Payments at Plaid, was hired as VP/General of PayPal’s Consumer Group.
Details. PayPal already offers an “Advanced Offers” advertising product that uses AI to offer PayPal users merchant-specific discounts every time they make a purchase.
The company plans to expand this to sell ads to brands outside its commercial network that can be shown on the web and connected TV.
What they are saying PayPal says users can choose not to include their data in ad targeting.
“If you’re someone who’s buying products on the web, we know who’s buying the products where, and we can leverage the data,” Grether told the WSJ.
between the lines The move follows other financial giants such as JPMorgan Chase entering the retail media advertising space by monetizing their customers’ data.
PayPal’s ad business is still nascent and may struggle to move the needle on the fintech firm’s higher-margin payments processing core business.
The general picture. PayPal’s advertising ambitions It comes as the company looks to bounce back from recent struggles, including major layoffs and a slump in stock after forecasting muted profit growth this year.
Add Search Engine Land to your Google News feed.
New in Search Engine Land
About the author
Anu Adegbola has been a paid media editor for Search Engine Land since 2024. She covers paid search, paid social, retail media, video and more.
In 2008, Anu’s career began with
deliver digital marketing campaigns (primarily but not exclusively Paid Search) by creating strategies, maximizing ROI, automating repetitive processes and making all marketing departments efficient through inspirational leadership both on the agency, client and marketing technology side.
Outside of Search Engine Land article editing, she is the founder of the PPC networking event: PPC Live, host of weekly podcast PPCChat Roundup, ibRand Evangelist at ClickTech.
He is also an international speaker with some of the stages he has presented being SMX (USA), SMX (Munich), Friends of Search (Amsterdam), brightonSEO, The Marketing Meetup, HeroConf (PPC Hero), SearchLove, BiddableWorld, SESLondon, PPC Live Chat, AdWorld Experience (Bologna) and more.
[ad_2]
Source link
