📈 A New Revenue Play
Mercari Japan is diving into the advertising business. The company launched cost-per-click (CPC) ads, giving sellers more visibility. Ads will appear both on and off the Mercari platform. With 23M monthly users, Mercari sees a big revenue opportunity. Japan’s internet ad market is worth $21.9B, and retail media is booming. By leveraging user data, Mercari aims to connect shoppers with relevant products. This move mirrors strategies from e-commerce giants like eBay and Amazon.
🎯 On-Site & Off-Site Ads
Mercari Ads includes two main types: on-site and off-site. On-site ads help sellers boost visibility in Mercari’s search results. Off-site ads target external sites using Mercari’s purchasing data. Advertisers can use Product Ads, which sync with product listings, or Infeed Ads, which require simple image and text submissions. The company says Mercari users spend more time on-site than other marketplaces, making their ad targeting highly effective.
💰 A Market Poised for Growth
Retail media ads are growing fast in Japan. The market is set to hit $3.7B by 2028, up from $939M in 2024. Mercari wants a piece of that pie. The company hopes ad revenue will help offset slow GMV growth. The move also follows trends in the U.S., where retail media is a major revenue driver for platforms like Amazon. While Mercari Ads is Japan-only for now, a U.S. expansion could be next.
🤔 What’s Next?
Mercari’s ad strategy is promising but must avoid ad overload. eBay’s Promoted Listings have drawn criticism for cluttering search results. Mercari must balance monetization with user experience. For now, sellers gain new ways to promote products, while buyers get targeted ads. The question is whether users will embrace the change—or find it too intrusive. If successful, Mercari Ads could become a key revenue stream beyond Japan.
Would you use pay-per-click ads to promote your items on Mercari?
