ClickZ eBay Insights Newsletter - 11.07.2024

PLUS: Front Row Shares Tips to Maximize eCommerce Deal Days 🛒

Author

Rafe Houston
November 07, 2024 • Estimated Reading Time: 6 minutes

Insights of the Week 📖

YouTube surpasses forecasts in Alphabet's Q3 earnings call

Google parent Alphabet's Q3 earnings call revealed YouTube's impressive performance, bringing in nearly $9b in ad revenue—a 12.2% increase year-over-year. This substantial growth, typically undisclosed by Alphabet, signals the platform's rising dominance in digital advertising.

👉 Fospha, also highlighted this upward trend in their their latest report, identifying YouTube as the second-fastest-growing ad channel for eCom brands by ad spend.

While YouTube currently reports the highest CPA among Google channels as brands adapt and optimize their campaigns, its increasing popularity reflects a broader shift toward brand-building channels for long-term growth. The platform's potential for driving brand growth makes it one to watch in coming quarters.

🔗 Read about the earnings call here.

Liberis & eBay Launch Flexible Cash Advance up to $2M for Sellers

Liberis’ CEO, Rob Straathof, on LinkedIn describes the launch as a breakthrough in accessible financing, designed to fuel growth and resilience for small businesses. Now, eBay sellers have a powerful tool to keep inventory stocked, handle unexpected expenses, and seize new opportunities as they come.

Specialty Bites 🍪

eBay's third quarter of 2024 showcased robust growth and strategic advancements. Key highlights include:

  • Revenue reached $2.6 billion, marking a 3% increase, while Gross Merchandise Volume (GMV) rose to $18.3 billion, up 2%.

  • The company returned $881 million to stockholders, with $750 million in share repurchases and $131 million in dividends.

  • eBay's innovative strides include a redesigned global advertising platform and AI-powered tools for sellers, enhancing user experience and business growth.

In addition to financial success, eBay expanded its Seller Capital program and launched initiatives like Pre-Loved Fashion Week, emphasizing sustainability. The company also strengthened its leadership team with new appointments, ensuring continued momentum in a dynamic market. These efforts reflect eBay's commitment to leveraging technology and strategic investments for long-term growth.

eBay's stock fell due to disappointing holiday season guidance, despite surpassing third-quarter expectations in profit, sales, and gross merchandise volume. Analysts from Jefferies and Deutsche Bank expressed concerns over fourth-quarter growth, highlighting potential issues in sustaining momentum. EBay shares, however, have increased significantly this year.

eBay's forecast for fourth-quarter revenue falls short of Wall Street expectations due to cautious consumer spending on non-essentials. Economic challenges, including inflation and a shorter holiday season, impact sales. Despite a slight rise in gross merchandise volume, eBay's fiscal year 2024 revenue projection remains below estimates.

Editor’s Pick🎯

Jamie Bolton reveals how top eCommerce brands drive resilient growth:

🌐 Diversification is Key: A diverse channel mix acts as an “insurance policy” for brands amid rising CPAs and a challenging market.

🔄 Stay Agile: What worked last year may not work today. Top brands adjust their strategy over time, adapting to new growth levers as they mature.

📊 Measurement Matters: With channel diversity comes more complex measurement needs. Only with full-funnel attribution can brands assess their channel mix and remain agile.

For a full rundown, check out the full post!

Performance Platters 🍽️

Front Row, an acceleration company, helps brands optimize eCommerce strategies on platforms like Amazon. By leveraging Deal Days, brands can boost sales and visibility. Success requires planning, unique offerings, and nurturing customer loyalty. Effective SEO and affiliate marketing are crucial for sustained growth and maximizing long-term benefits.

LinkedIn's new research highlights the effectiveness of connected TV (CTV) campaigns for reaching decision-makers. With LinkedIn's CTV ad options, you can extend your marketing to platforms like Paramount and Roku. This approach could enhance your campaign's reach, especially among influential LinkedIn users who regularly consume CTV content.

Brands are shifting focus this holiday season, emphasizing social media content like hauls and unboxing over traditional eCommerce. According to Digiday Research, companies are refining strategies, including gift guides and catalogs, while adjusting discounts and revenue expectations. Insights from industry professionals highlight evolving marketing tactics and competitive dynamics.

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