PayPal is enhancing its advertising capabilities by launching Transaction Graph, a new tool that segments audiences based on purchases made across PayPal-owned platforms including Honey, PayPal, and Venmo.
Transaction Graph utilizes data from 30 million merchants and 400 million consumers globally, covering approximately 25% of worldwide commerce. This extensive dataset allows PayPal to offer advertisers deeper insights into consumer behavior, such as what they buy, when, and where, surpassing the capabilities of individual retailers.
Mark Grether, PayPal Ads’ senior vice president, highlights that the company’s diverse user base includes distinct segments like the “young, urban, social” Venmo users. PayPal Ads, initially launched in the U.S., expanded earlier this year to the U.K. and Germany.
By analyzing transactions across multiple merchants, PayPal can provide brands with market share assessments and identify opportunities to boost their sales beyond what is possible from single merchants alone. The Transaction Graph has been in beta for eight months and is already employed by advertisers such as Target, Best Buy, and Verizon, supported by partnerships with measurement firms including Lucid and InMarket.
Grether emphasized the importance of transaction data in advertising, stating, “Transactions are the new cookie,” underscoring the reliability and trust this data brings to PayPal’s ad solutions.
Industry forecasts from eMarketer predict that retail media will account for over 20% of all digital media spending by 2029, indicating strong growth potential. Financial institutions like Chase and Revolut are also entering the retail media space, signaling increased competition.
Upcoming events such as the Cannes Lions International Festival of Creativity will spotlight retail media innovations. Nectar360 is hosting a retail media summit, while Albertsons Media Collective plans a pop-up grocery store at MediaLink beach, showcasing the growing emphasis on creativity and practical applications within retail and financial media networks.
Tim Ringel, CEO of Meet the People, noted the shift from hype to real-world implementation in retail media: “The hype cycle is over and the reality cycle is kicking in.”