eBay Inc (NASDAQ:EBAY) is planning to launch targeted ads on its mobile apps pretty soon. The company came under intense scrutiny of the Street, when Apple Inc. (NASDAQ:AAPL) launched its mobile payment platform, Apple Pay. Most people believe that Apple Pay will pose a serious threat to PayPal, which is owned by eBay Inc (NASDAQ:EBAY). It seems that eBay Inc (NASDAQ:EBAY)is gearing up for the fall in profits that Apple Pay will cause by looking for revenue streams elsewhere. CNET recently revealed in a post that eBay Inc (NASDAQ:EBAY) will be making use of the data that it has collected from millions of shoppers on its app to place targeted ads on its mobile app.
According to the post, eBay Inc (NASDAQ:EBAY) has revealed that it gets around 4.6 million visitors on its apps on a daily basis and it keeps track of over 290 million hours of shopping each month. The ads that eBay Inc (NASDAQ:EBAY) is planning to launch by the year-end won’t be the standard ‘banner’ ads, but instead it would be focused advertising that users will find in their product-feed.
eBay Inc (NASDAQ:EBAY) is trying to cash in on the recent trend by marketers to allocate hefty sums for mobile advertising. Worldwide mobile advertising is expected to reach $32.71 billion this year, according to the post, up 87% from 2013. More than 50% of those advertising revenues will come from the U.S., where the spending by marketers this year is expected to be in tune of $17.73 billion. It is worth to note that eBay Inc (NASDAQ:EBAY) had toyed with a similar idea in 2012, but backed down after users complained and witnessing no significant addition to revenues.
As of June 30, 2014, billionaire Carl Icahn‘s Icahn Capital LP owns over 30 million shares in eBay Inc (NASDAQ:EBAY).