eBay Hikes Promoted Listings Priority Cost Per Click Ad Bid Minimums 10X With No Notice To Sellers
It appears the eBay Promoted Listings ad rate increases will continue until revenue (but certainly not morale) improves as sellers discover a sneaky 10x hike of minimum cost per click bids during the critical Q4 holiday shopping season.
Last week, sellers were shocked to discover that eBay increased the Promoted Listings General Dynamic ad rate cap minimum from 2% to 5%, but apparently that money grab wasn't enough for eBay.
Liz Morton
Sellers are also now discovering the minimum bids for Promoted Listings Priority cost per click ads have increased a whopping 10x, going from a previous requirement of at least $0.02 per click to $0.20 per click in some cases.
For Priority campaigns that use the Smart Targeting option which allows eBay to automate aspects of the campaign, the Maximum CPC rate cap setting now requires a minimum of $0.20 per click.
Priority Campaigns that use Manual Targeting with Fixed Bidding now show a minimum of $0.10, while also daring to suggest there exists a reality in which someone might want to pay as much as $100 per click on their ads.
It's unclear exactly when this change was made, as just like with the Promoted Listings General change, eBay has not bothered to proactively inform sellers with a public announcement.
In fact, eBay's policy page for Promoted Listings Priority Cost Per Click ads still shows the minimum at $0.02 as of time of publishing.
Also, like the Promoted General Dynamic changes, it is not clear exactly what is happening to existing ad campaigns that have a lower rate cap already set (though I would assume in both cases those ads may simply not be delivered until/unless they are bumped up to the new minimums) or exactly what impact this may be having on ad rates for sellers who were already above the minimum.
I suspect those ads may see a loss in performance as well if they aren't adjusted, since the gap between the minimum and what they are currently set at will be smaller, which could diminish some of the competitive edge the higher bids had previously received.
As the saying goes - a rising tide lifts all boats, or in eBay's case, all ad revenue.
I attempted to get some clarity on these issues in the Optimize Your Listings With Ads breakout session during yesterday's Winter Seller Check-In event, but my question in the Q&A section was not answered.
These sneaky ad rate changes coincide with eBay's recent Q3 2024 earnings report, which disappointed Wall Street with weaker Q4 revenue guidance - largely driven by the fee changes and other consumer to consumer initiatives in the UK.
Liz Morton
That guidance sent eBay's stock tumbling after the call, so it's not surprising they are acting swiftly to try to gain a Q4 revenue bump.
It's also sadly not surprising that they would look to do so on the backs of sellers with an unannounced increases to minimum ad rates.
Coincidentally, sellers have also been reporting a massive increase in suggested ad rates, with some even topping 20%+.
Meanwhile, eBay continues to desperately stuff as many ads as possible in as many places as possible, with over 300 ad slots on most listings, not to mention search, display ads, and increasing encroachment into buyer watch lists and purchase history pages.
It's been clear for quite some time that CEO Jamie Iannone has no real strategy for significantly growing Active Buyers and Gross Merchandise Volume (GMV) on the platform, leaving taking a larger piece of the pie from existing sales as the only real path for revenue growth - and this move just reinforces the desperate situation that eBay finds themselves in.
While it is not at all surprising, the lack of transparency and engagement with sellers on this issue is utterly appalling and Iannone, VP Global Advertising Alex Kazim and his entire team should be ashamed at pulling a stunt like this during the most critical shopping time of the year for many small businesses who are already feeling the squeeze both from eBay fees and larger macro-economic conditions.
At this point, I'd recommend every person impacted by these changes file a report with the FTC Bureau of Consumer Protection for bad business practices and junk fees - something the Commission has recently been taking enforcement action on to the tunes of millions of dollars in settlements.
How are eBay's off the radar ad rate minimum changes impacting your business? Let us know in the comments below!
