Yun Liu

Head of Analytics

Global eBay Partner Network

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eBay Partner Network: eBay’s Affiliate Channel

• eBay’s largest paid internet marketing channel

• EPN gives shoppers access to 800M+ items daily

• EPN works with 300k partners in 13+ countries Buyers

CUSTOMERS

Sellers

PublisherseBay

EPN focus: Demand Generation

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Competitive Pricing

• Revenue Share + Bonus for

New/ReActivated

• Standard Rate Card + Payout

Adjustment by Business

4

EPN works with different sites

• Business Model

– Contents

– Online Shopping comparison

– Loyalty/cashback

– Portal

– Etc

• Optimization

– Pricing Elasticity

– Tools and Landing page

– Network Quality

– Partner development

5

Elasticity high

ROI

Content OSC

Role of analytics: Data Driven Action

• Focus is Action

– Insights: statistics such as trends, correlations, incrementality

– Actions: pricing based on iROI and elasticity

– Balance isn’t just art if we leverage A/B testing

• No surprise –> surprise

– Surprise outcomes if based on incrementality

• But causality (incrementality) is impossible.

– Best one could do is estimation based on test.

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DATA Insight Action

Elasticity high

iROI

Content

OSC

(illustration)

Attribution (correlation) => Incrementality (causality)

• Attribution: Direct Qualified Transaction Amount $1 => d$1

• How much of that $1 sales is incremental? => i$x

• Incremental portion UNKONWN.

– A/B Test could tell direction with significance.

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$1

One common practice: d$1 = i$1.5?

• Halo effects

• Untracked $ due to cookie deletion, etc

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$1 $0.5

d$1 = i$0.5?

• Substitution for Organic, SEO, SEM traffic

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0$0.5

Incrementality test and research at eBay

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Paid Search (SEM) results:

Brand Keywords (ebay)

Non_Brand Keywords: fraction of $1

New/Reactivated: Positive impact on sales

EPN Incrementality tests

• Key hypotheses

– BUY MORE

– More User

• A/B test by individual sites

– Typical test runs from 20 to 30 days

– Control (ads on) group normally expose ads to 100k users

– 50k clicks generated

• Different BM with different results

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Breakdown purchase funnel: Sales/User

more buyer + buy more

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𝑆𝑎𝑙𝑒𝑠

𝑈𝑠𝑒𝑟𝑠=

𝑆𝑎𝑙𝑒𝑠

𝐵𝑢𝑦𝑒𝑟𝑠∗𝐵𝑢𝑦𝑒𝑟𝑠

𝑈𝑠𝑒𝑟𝑠

Different stories from Difference traffic (demographics)

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Benefits: Split the d$1 based on test results=> pricing

• % of d$1 is estimated based on test results

• iROI is better than ROI to enable better pricing

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Elasticity high

iROIContent

OSC

(illustration)

ROI

Summary

• Analytics is driving EPN optimization

• Different business models have different incrementality

• A/B test could provide significant estimation for incrementality

• Balance of iROI and elasticity is simplified using the framework

DATA Insight Action

testing pricing