Learn how to sell on Amazon from Skip McGrath Follow Skip on Facebook
Follow Skip on Twitter
Learn How to Sell Used Books on Amazon

Don’t Miss a Single Post

Fill out this form to be notified of new blog posts.

Blog Search



See Also

Our Most Popular Posts

Resources at Amazon


Will eBay Ever Start Advertising Again?

April 7th, 2009 by Skip McGrath

eBay continues to lose market share as their TV advertising stays dark

Having spent a lot of years in the corporate world and even a short stint with a big NYC advertising agency, I know that when business is slow advertising is one of the first things to get cut. However there were always a few very smart companies who used business slowdowns to increase their market share by holding or even increasing their advertising spending in a downturn.

It’s been quite a few years since I was in the advertising business, so I spoke to a friend of mine who is a TV media buyer for a big NYC ad agency. She told me that a decent network and cable TV campaign would cost about $40 to $50 million.   According to eBay’s 2008 balance sheet, at the end of 2008, eBay was sitting on over $4.2 Billion in cash and other cash equivalents. Using a $50 million budget, an ad campaign would use up about 1.1% of eBay’s cash on hand. (Math was never my strong suit but I think that is about right).

On the income side, eBay posted $8.54 Billion in revenue. On that basis, a $50 million advertising program would consume about 0.6% of eBay’s revenue.

There is no question that eBay is under pressure from Wall Street to perform and most companies react to that by cutting expenses in a recession, but eBay is exceptional in that it is sitting on piles of cash at a time when most companies are smothering in debt.  eBay could put this cash to good use by going back into TV advertising where it has been dark for over 2 years (or is it 3?).  Besides attracting buyers to the platform, a TV campaign would dramatically boost seller moral which continues to erode.

See Also

Write a comment

iDrive Cloud Backup
Mailers USA

Skip's Newsletter
Own Your eBay Traffic
Complete ebay Marketing System
Niche Markets
Wholesale Buying System
Cleer Platinum
eBay Consignment Business
Site Build It!
© 1999- Harry McGrath, Inc., DBA Skip McGrath, Auction Seller's Resource and Vision-One Marketing. All Rights Reserved.

eBay Tools and Resources | Contact Us | Privacy Policy | Guest Contributions | Shipping & Return Policies
Home | Training | Free Articles | Tools & Resources | Web Wholesale SearchTestimonialsBlog