How Important Is The Marketing & Advertising Business For eBay?

June 15th, 2016 · by Trefis Team
EBAYYTD+40.1%SPYYTD+10.9%XLYYTD-0.7%
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eBay (NASDAQ:EBAY) first quarter revenue growth was largely driven by a 17% increase in Marketing & Advertising revenue, compared to a 1% increase in Marketplaces sales. Below we take a look at how important the Marketing & Advertising business is for eBay’s revenue and EBITDA growth over the next five years.

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We expect eBay’s Marketing & Advertising division to contribute about 21% of the company’s revenues in 2016 and maintain a similar share in 2021. In terms of operational profitability, we expect the division to contribute around 21% to eBay’s EBITDA by 2021, contributing about $810 million of the company’s overall expected EBITDA of $3.87 billion.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Ebay
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