PayPal $PYPL (-1,16 %) is often only seen as a payment service provider, but the company could soon establish itself as a strong advertising platform. PayPal's advertising business has the potential to permanently change the business model and open up new growth markets. 🚀
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Why advertising is exciting for PayPal
1️⃣ Data advantage: With millions of active users worldwide, PayPal has extensive data on purchasing behavior and transactions - a dream for advertisers. 📊
2️⃣ Targeting: Through targeted ads, PayPal could help merchants reach customers directly on their platform, which could massively increase conversion rates. 🎯
3️⃣ New source of revenue: The advertising business would be an additional, high-margin source of income and would make PayPal less dependent on pure transaction fees.
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What does this mean for investors?
The add business could make PayPal more attractive in the long term:
Higher margins through advertising revenue 💰
Larger ecosystem: merchants and customers benefit equally from an integrated advertising system
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Conclusion:
PayPal could start a whole new growth engine by getting into advertising. 🌟
What do you think? Will PayPal become the new player in the ad business with advertising, or will it remain a payment giant? 🤔 It's my largest position with a weighting of over 20%, but this was also due to the massive increase last year.