Paypal Enters Ad Arena, Leveraging Users Data

Paypal Enters Ad Arena, Leveraging Users Data

PayPal is venturing into the world of advertising. According to the Wall Street Journal, the digital payments leader is set to launch an ad business, leveraging the data it generates from tracking the purchases as well as the broader spending behavior of its 400 million users. With this move, PayPal hopes to unlock new revenue streams and boost its growth.

A seasoned ad veteran at the helm

Mark Grether, former head of Uber’s advertising division, will serve as the Senior Vice President and General Manager of the newly formed PayPal Ads division, the report said. In his new role, he will be tasked with developing innovative ad formats, managing sales efforts, and building a robust team to propel the initiative forward.

Advanced Offers, first ad product

PayPal has already begun testing the waters with “Advanced Offers,” an ad product launched in January 2024. Advanced Offers utilizes AI and user data to present personalized discounts and promotions to PayPal users directly at checkout. It only charges advertisers when consumers make a purchase. PayPal now wants to expand its reach and sell ads not only to its own customers, but also to those that don’t sell products or services through PayPal, the Wall Street Journal reported. This could open the door for a wider range of brands to utilize PayPal’s valuable consumer insights. The digital payments giant processed 6.5 billion payments by approximately 400 million customers in the first quarter.

A crowded marketplace with high stakes

PayPal’s entry into the advertising arena joins a growing trend of financial institutions capitalizing on their vast customer transaction data for targeted advertising. According the the report, this trend might lead to higher ad rates due to the detailed consumer profiles PayPal can offer.

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