The retail media boom isn’t just for Amazon and brick-and-mortar chains. Online marketplaces are also investing heavily in ad platform businesses, albeit for different reasons. Etsy and eBay, two of the most prominent non-Amazon online marketplaces, both reported 2022 year-end earnings on Wednesday – and both framed advertising as a fast-growing revenue pillar with important implications for their respective core retail businesses. A betsy on Etsy Etsy’s market cap is down by more than half since highs in November 2021 and its stock dropped sharply after the company reported earnings. Fourth quarter revenue was down 4% YoY and full-year revenue decreased by 1%. But Etsy has been pushing hard to boost its ad business. In 2020, it made advertising mandatory for sellers who earn more than $10,000 per year, and last year increased its share of marketplace transactions from 5% to 6.5%. In other words, Etsy began requiring sellers to re-spend a portion of sales on offsite ads and started taking a larger fee on all sales it drives back to the site. While Etsy’s ecommerce marketplace revenue was up only slightly – thanks mainly to the increased fee – its services revenue, which includes advertising, was up 17% […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
