Now, let’s turn to the Marketplaces business. Marketplaces delivered $2.2 billion in revenue, which grew 6%, GMV grew 8%, and operating margin declined 340 basis points. It was a challenging quarter. As John indicated, we got off to a good start, but we had significant obstacles late May.The combination of the cyberattack and the Google SEO had an immediate and dramatic impact on GMV growth. June GMV growth was 7% driven by slower active buyer growth and lower conversion. In light of these events, we have made significant investments to get eBay users reengaged, including couponing, seller incentives and increased marketing spend . . .
The $200 Million Penalty?
The consistency was quick, swift and immediate impact when we know – when we were not letting people in the door until they reset their password and/or we weren’t getting the new buyer traffic from SEO.
As a result we are lowering our high end full year revenue guidance by $200 million from $18.5 billion to $18.3 billion.
Growing With Better Paid Search & Social
Yes, we got a couple of body blows in Q2 with they are having to reset the passwords and the SEO change, but we are continuing to invest in this business and we think it’s going to be us one of the winners in e-commerce and we will have strong double-digit growth. That’s our goal. We are focused on it. We still believe that’s achievable.
We came into this year saying that we are going to be investing more in the marketing as a percentage of total to drive more demand. That was kind of one of those generic learnings from last year to this year.We came into this year saying that we are going to be investing more in the marketing as a percentage of total to drive more demand. That was kind of one of those generic learnings from last year to this year.