eBay 2012 Annual Report Download - page 48

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an ecommerce operation with internal resources. As a result, we often compete with in-house solutions promoted and supported by internal
information technology staffs, merchandising groups, and other internal corporate constituencies as well as with technology and service
providers that supply one or more components of an ecommerce solution that allow prospective clients to develop and operate their ecommerce
business in-house. This group of providers may include the prospective client itself and companies that offer: Web platforms (e.g., Art
Technology Group (owned by Oracle), IBM, Amazon, Demandware and Microsoft); customer care/call center services (e.g., West
Communications, Amazon, Sykes Enterprises, and Convergys); fulfillment and logistics (e.g., PFS Web, Amazon, Innotrac, DHL, and UPS);
and systems integrators and technology providers (e.g., Accenture, EDS, Sapient, Infosys, Oracle and IBM).
We believe that we compete with ecommerce services competitors primarily on the basis of the following:
Interactive Marketing Services
The market for interactive marketing services is continuously evolving and intensely competitive. In our interactive marketing services
business, we face competition from other providers of interactive marketing services, other providers of traditional marketing services and in-
house marketing departments, as our prospective interactive marketing services clients evaluate managing their marketing services with internal
resources as well as through interactive marketing agencies. As a result, we often compete with in-house solutions promoted and supported by
internal marketing departments as well as with service providers that supply one or more interactive marketing services. This group of providers
may include the prospective client itself and companies that offer: email management and data aggregation (e.g., Experian, Harte-Hanks and
Epsilon); online marketing and design services (digital marketing services agencies such as Omnicom Group, WPP Group, Publicis and the
Interpublic Group of Companies); and other interactive marketing services (e.g., Google, LinkShare (owned by Rakuten), TradeDoubler, and
ValueClick). Low barriers to entry in the interactive marketing industry could also increase the number of competitors our interactive marketing
services business may face.
We believe that we compete with interactive marketing services competitors primarily on the basis of the following:
Our ecommerce services and interactive marketing services businesses have competitors with longer operating histories, larger customer
bases, greater brand recognition and greater financial, marketing and other resources. Those competitors may be able to secure components of
their technology and services on more favorable terms and devote more resources to technology development and marketing than our
ecommerce services and interactive marketing services business. In addition, as we expand our ecommerce services and interactive marketing
services businesses internationally, we will face increased competition from global and local companies which may have a greater understanding
of, and focus on, the local customer. Lastly, as our current and prospective clients seek a larger global presence and target new markets abroad,
we increasingly will compete with ecommerce services competitors on the basis of our international ecommerce solutions.
46
• offering the choice of a complete integrated solution or a component-
based solution;
•
promoting the client's brand and business, rather than our own;
•
providing scale and operating leverage with an enterprise focus;
•
establishing a commitment to invest in and enhance our platform; and
•
aligning our financial interests with those of our clients.
• offering digital marketing solutions that are integrated with our ecommerce services platform, which we believe provides a more
strategic, cohesive and optimized approach to growing ecommerce businesses; and
•
providing services that utilize proprietary technology to promote stronger customer engagement designed to increase clients' return on
investment.