Weekly Prompt: PayPal unveils new ad platform and more

PayPal unveils new ad platform powered by user data

PayPal is launching a new advertising business, PayPal Ads, leveraging its vast user transaction data to offer targeted advertising opportunities. The platform will initially launch in the US, offering ad space across PayPal's properties, including Venmo and Honey. Next year, PayPal plans to expand the platform, granting advertisers access to its network of over 30 million merchants, creating a vast commerce-media ad network.

The move, announced at Advertising Week New York, marks PayPal's strategic entry into the competitive digital advertising arena. PayPal Ads will leverage the company's extensive reach, boasting access to a user base of 400 million PayPal users, along with 90 million users of Venmo, its popular person-to-person payment service, and millions more using Honey, its coupon and cash-back tool. This, combined with data gleaned from 225 billion transactions across millions of merchants, forms the backbone of PayPal's advertising proposition.

PayPal emphasizes the platform's ability to reach consumers at every stage of their shopping journey, along with providing closed-loop attribution for campaign measurement. Mark Grether, leading the initiative, highlighted the platform's access to transaction data, which PayPal believes enables "a holistic view on market share.” This capability allows brands to track their performance across multiple merchants, offering a comprehensive understanding of consumer behaviour.

PayPal Ads will provide advertisers with cross-merchant insights, market share analysis, and optimisation opportunities across multiple touchpoints. Looking ahead, PayPal also plans to expand its advertising offerings beyond display ads to include video advertising. The company is also working on self-service ad software for its clients and plans to offer PayPal Ads in more territories, such as the UK and Germany.

The launch of PayPal Ads reflects a broader trend within the financial services sector, with players like Klarna, Revolut, and Chase launching their own financial media networks (FMNs). As traditional profit margins face pressure, financial institutions are increasingly turning to advertising as a way to diversify revenue streams.

Sources: Business Insider, eMarketer, WSJ

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