The data of PayPal's millions of customers are succulent loot that the famous online payment platform is willing to take advantage of every last drop in an advertising network that the American company is currently developing and with which it hopes to spur its growth.

According to The Wall Street Journal, PayPal would be laying the foundations of an advertising network that would anchor the copious torrent of data that the North American multinational generates through the "tracking" of its customers' purchases and their spending behavior. In addition, PayPal's new advertising network would also be fed by data from its subsidiary Venmo.

PayPal has hired Mark Grether, who was previously head of Uber's advertising division, to lead the company's new advertising platform as vice president and general manager of the newly created PayPal Ads area. In his new role, Grether will be responsible for developing new advertising formats, overseeing sales and recruiting talent for PayPal's new advertising division.

In January of this year, PayPal already introduced its first advertising product, Advanced Offers, which uses AI and the company's data to help retailers connect with their customers through personalized discounts and promotions.

Advanced Offers, which is currently testing marketplaces such as eBay and Zazzle, only charges advertisers when the consumer makes a purchase.
PayPal wants to spur growth with the help of its new advertising network

However, PayPal now wants to sell advertising not only to its own customers but also to non-endemic advertisers who do not sell their products and services through this platform. The goal is that advertisers can confront their target audience with ads on any medium, from the web to connected TV.

PayPal processes a whopping 6.5 billion online payments from approximately 400 million customers during the first quarter of the year.

The data of all those users who make purchases through PayPal will be included by default in the company's new advertising network, although they can prevent, if they wish, their data from being used on this platform.

PayPal has also begun to deploy non-segmented offers from retailers in the Venmo app, although the company does not want to alienate the mainly young users of this application with too many promotions, who use it as a kind of social network.

While PayPal's new advertising network promises to provide advertisers with a much more detailed and accurate portrait of their target audience, its prices could be significantly higher than other similar advertising platforms. Ultimately, the network PayPal is working on will be in a position to segment consumers based on their purchasing power.

PayPal, which lived a golden age during the pandemic, is not currently going through its best moment and in January announced, in fact, that it would cut 9% of its workforce worldwide. However, the company managed to grow its profits during the first quarter of the year and PayPal later revised its 2024 forecasts upward.

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