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Performance Marketing from an Advertiser’s PerspectiveJJ McCarthyGlobal Director, eBay Partner NetworkSeptember 27, 2011

eBay, Inc. | 2

1 BILLION page views per day

Over 100 million active users worldwide

12 million unique visitors daily

A global presence in 39 markets

$60 billion GMV (Sales Volume)

$2,000 sold every second!

Mobile GMV is on pace to reach

$4 billion

eBay, Inc. | 3

Agenda

The Appeal of Performance Marketing• Leveraged way to engage with consumers in authentic environments off of eBay• Performance basis is highly appealing from budgeting and risk perspective• Create ubiquity for eBay throughout the purchase funnel on performance payment basis

EPN’s Obligations to eBay.com • Fraud Control: Ensure that the dollars spent in this channel are yielding true value• Brand Protection: Ensure that the eBay brand is properly represented in all instances• ROI Positive Traffic & Sales: Maximize Velocity for eBay Sellers• Competitive Advantage: EPN’s Publisher Base represents a deep marketing channel not easily duplicated by

would-be competitors

Points of Differentiation vs. Competition• In-House Advantage: Level of Commitment, Insight, Publisher-Centricity, f(REE) Model• Relevance• Ease of Use• Earnings

Our Definition of Success• Consideration: Establish EPN as “First Destination for Ad Inventory”• Mindshare: Publishers dedicate more time and real estate to EPN (at competitors’ expense)• Word of Mouth: Publishers recommend EPN to their colleagues and peers• Network Effect: investment by EPN begets investment by Publishers begets further investment by EPN

eBay, Inc. | 4

The Appeal of Performance-Based Marketing

Serendipitous Discovery

Active Research

What to Buy

Where to Buy

Engagement

Ubiquity

ROI with Scale

eBay, Inc. | 5

Agenda

The Appeal of Performance Marketing• Leveraged way to engage with consumers in authentic environments off of eBay• Performance basis is highly appealing from budgeting and risk perspective• Create ubiquity for eBay throughout the purchase funnel on performance payment basis

EPN’s Obligations to eBay.com • Fraud Control: Ensure that the dollars spent in this channel are yielding true value• Brand Protection: Ensure that the eBay brand is properly represented in all instances• ROI Positive Traffic & Sales: Maximize Velocity for eBay Sellers• Competitive Advantage: EPN’s Publisher Base represents a deep marketing channel not easily replicated by

would-be competitors

Points of Differentiation vs. Competition• In-House Advantage: Level of Commitment, Insight, Publisher-Centricity, f(REE) Model• Relevance• Ease of Use• Earnings

Our Definition of Success• Consideration: Establish EPN as “First Destination for Ad Inventory”• Mindshare: Publishers dedicate more time and real estate to EPN (at competitors’ expense)• Word of Mouth: Publishers recommend EPN to their colleagues and peers• Network Effect: investment by EPN begets investment by Publishers begets further investment by EPN

eBay, Inc. | 6

EPN’s Obligations to eBay.com: Control Fraud

eBay, Inc. | 7

EPN’s Obligations to eBay.com: Protect the Brand

logO

eBay, Inc. | 8

EPN’s Obligations to eBay.com: Create Velocity

Serendipitous Discovery

Active Research

What to Buy

Where to Buy

150,000/Day

80,000/Day

50,000/Day

10,000/Day

SOLD

eBay, Inc. | 9

EPN’s Obligation to eBay.com: Establish Competitive Barriers

Serendipitous Discovery

Active Research

What to Buy

Where to Buy

EPN has over 300,000 click-active websites driving traffic to eBay.com each month, representing a network of forums, blogs, and review sites that any would-be competitor would require years to replicate.

eBay, Inc. | 10

Agenda

The Appeal of Performance Marketing• Leveraged way to engage with consumers in authentic environments off of eBay• Performance basis is highly appealing from budgeting and risk perspective• Create ubiquity for eBay throughout the purchase funnel on performance payment basis

EPN’s Obligations to eBay.com • Fraud Control: Ensure that the dollars spent in this channel are yielding true value• Brand Protection: Ensure that the eBay brand is properly represented in all instances• ROI Positive Traffic & Sales: Maximize Velocity for eBay Sellers• Competitive Advantage: EPN’s Publisher Base represents a deep marketing channel not easily replicated by

would-be competitors

Points of Differentiation vs. Competition• In-House Advantage: Level of Commitment, Insight, Publisher-Centricity, f(REE) Model• Relevance• Ease of Use• Earnings

Our Definition of Success• Consideration: Establish EPN as “First Destination for Ad Inventory”• Mindshare: Publishers dedicate more time and real estate to EPN (at competitors’ expense)• Word of Mouth: Publishers recommend EPN to their colleagues and peers• Network Effect: investment by EPN begets investment by Publishers begets further investment by EPN

eBay, Inc. | 11

Points of Differentiation: Our Culture

f(REE)

EPN’s value to publishers is a function

of three things:

1) Relevance2) Ease of Use

3) Earnings

• Outsourced Publisher Experience

• Generic Publisher UX

• Generic Publisher Tools

• Generic Publisher Reports

• Culture of Publisher-Centricity

• Entire Team focused on f(REE)

• Custom Publisher UX

• Custom Publisher Tools

• Custom Publisher Reports

eBay, Inc. | 12

Points of Differentiation: Relevant Inventory

C2C Inventory

Local Inventory

Online Inventory

eBay, Inc. | 13

Points of Differentiation: Ease of Use

API

RSS Feeds

XML Feeds

Data Feeds

Custom Banner

Creatives

Link Generator

eBay, Inc. | 14

Points of Differentiation: Earnings

Business Model & Vertical

GMB per Click Latency Take

RateUPI Trans-

parencyTool ID Site

Metrics

ACRU Factor

6.5% $10 8/10 8/10 3/10 10/10 9/10 8/104/10

EPC = $0.65 *1.08 *1.12 *0.91 *1.16 *1.21 *1.10*0.94

EPC = $1.04 $0.65 CPC

$1.04 CPC

eBay, Inc. | 15

Agenda

The Appeal of Performance Marketing• Leveraged way to engage with consumers in authentic environments off of eBay• Performance basis is highly appealing from budgeting and risk perspective• Create ubiquity for eBay throughout the purchase funnel on performance payment basis

EPN’s Obligations to eBay.com • Fraud Control: Ensure that the dollars spent in this channel are yielding true value• Brand Protection: Ensure that the eBay brand is properly represented in all instances• ROI Positive Traffic & Sales: Maximize Velocity for eBay Sellers• Competitive Advantage: EPN’s Publisher Base represents a deep marketing channel not easily replicated by

would-be competitors

Points of Differentiation vs. Competition• In-House Advantage: Level of Commitment, Insight, Publisher-Centricity, f(REE) Model• Relevance• Ease of Use• Earnings

Our Definition of Success• Consideration: Establish EPN as “First Destination for Ad Inventory”• Mindshare: Publishers dedicate more time and real estate to EPN (at competitors’ expense)• Word of Mouth: Publishers recommend EPN to their colleagues and peers• Network Effect: investment by EPN begets investment by Publishers begets further investment by EPN

eBay, Inc. | 16

Long Term Success: Network Effect

EPN increases its investment in

Relevance, Ease of Use, and Earnings

Publishers dedicate more time and real estate to EPN ad

inventory

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