Closing the Loop from Impression to Redemption

Scott Hendrickson

Senior Director, Advertising Solutions

PayPal Media Network

PayPal Media Network

Connect with 90MM US Shoppers Connect the right offer to the right consumer

Drive customers to purchase.

Connect with over 100MM US shoppers via mobile and online

Connect the right message to the right consumer

Drive shoppers to purchase and close the loop

Reach Relevancy Redemption

eBay Inc assets

Connect with 90MM US Shoppers Connect the right offer to the right consumer

Drive customers to purchase.

eBay

PayPal

Magento

Bill Me Later

PPMN

GSI

Milo

Red Laser

“eBay's acquisitions fit together to create a killer shopping machine for the online

and offline future of shopping.” – Fast Company

Enabling commerce

Connect with 90MM US Shoppers Drive customers to purchase.

Connect with over 100MM US shoppers via mobile and online

Drive shoppers to purchase and close the loop

$175B in total commerce in 2012

$14B in mobile commerce in 2012

Leveraging tools and data to engage customers and drive commerce…

Any time. Anywhere. Any way.

The omnichannel marketplace

Source: comScore study, December 2012

The consumer journey has forever changed…

The effect of mobile on the path to purchase

Consumer time spent vs. ad spend

Ad spend per media

Time spent per media

Source: VSS, Mary Meeker (KPCB), comScore, Alexa, Flurry Analytics

Case studies

Halls: Campaign objective

Drive purchases of Halls cough drops at partner pharmacy and retail locations

The solution: roaming geo-fences

• Geo-fenced location targeting of mobile ads around Halls partner pharmacy and retail stores

• Combine geo-fencing with third party data feed from CDC to serve ads in “high flu index” areas for increased relevancy

Results

• Measurement: click-to-map secondary action on mobile landing page as indicator of store foot traffic and purchase intent

• A/B test: control was an a geo-targeted national campaign compared against a localized geo-fence campaign that invoked high flu levels per the CDC

• 62.5% higher CTR in campaign using a roaming geo-fence

Best Buy: Campaign objective

Drive purchases of televisions through mobile and at Best Buy stores

The solutionReal time

inventory via Milo surfaces

TVs in stock at the local store

PPMN mobile ads geo-

targeting trade radius of Best

Buy stores

PayPal mobile express checkout enables

instant, easy purchasing

The resultsCTR measurement: 1% of all users

that saw the ad clicked on it

Mobile commerce measurement: 3% purchased a product for in-

store pickup

The Home Depot: Campaign objective

Drive in-store purchases with PayPal at The Home Depot

The Home Depot: Solution

• Closed loop offer campaign delivering real money into PayPal customer’s accounts to spend at The Home Depot.

• Offers were delivered via multiple channels: email, online and mobile.

• Consumers save the offer to their PayPal account.

• At checkout, the offer value is automatically deducted no need to show a phone, coupon or card to redeem offer – a frictionless experience.

The Home Depot: Results• Measurement: Offer Saves; Offer

Redemptions; Transaction amount; Total sales volume; Average order value

• $14,750 in offer funding drove a total of $149,212 total sales during one campaign: 10x ROI

• “ We believe PayPal’s solution has the potential to improve the checkout experience as we know it today by making it fast, secure and more convenient for the customer ” - Dwaine Kimmet, Treasurer & VP of Financial Services, The Home Depot

The PayPal WalletEnabling new commerce for the new economy

Mobile commerce today

Source: comScore study, April 2012

The intelligent, original digital wallet

PayPal is trusted by over 123M active customers who spend $315M daily.

• A digital wallet that has been used by millions for 14

years

• Simple, secure money management in a single

solution

• All funding sources saved in the wallet (credit, debit,

etc.)

• Deferred payment and credit options

• Ability to store loyalty and rewards cards

• All coupons and offers saved in one place

• Accesses over $4B in daily PayPal account balances

PayPal Wallet Vision Video

PayPal leads the digital wallet space

LevelUp

Lemon

ISIS

V.me

Square Wallet

MasterCard PayPass

Google Wallet

PayPal

2%

1%

1%

2%

2%

3%

8%

48%

5%

5%

6%

8%

8%

13%

41%

72%

AwarenessUsage

Source: comScore Digital Wallet Roadmap 2013

Consumer Awareness and Usage of Digital Wallet Offerings

Making it easy for the consumer

Saving the consumer time

25

Source 1,2: Forrester Total Economic Impact Study of PayPal, July 2012

Creating value for merchants & brands

And we’re just getting started…

Millions of consumers…

Millions of off-line merchant locations…

Billions of dollars in unspent account balances…

Delivering ubiquity

The number of merchants accepting PayPal will increase rapidly in 2013 with our Discover partnership

Jan 2013 Dec 2013

Partnering with merchants of all sizes

PayPal acceptance in-store

30

TOTAL SALES

$142 Billions

Questions? Let’s Discuss!

Scott HendricksonHead of Advertising Solutionsshendrickson@paypal.comFollow me on Twitter @HendricksonS

Thank you!