Podcast Summary: The Current Podcast – PayPal’s Jenna Griffith on Building a Media Business from Transaction Data

Episode Details:

• Title: PayPal’s Jenna Griffith on building a media business from transaction data
• Host/Authors: Damian Fowler & Ilise Lifring
• Release Date: May 14, 2025

Introduction

In this episode of The Current Podcast, hosts Damian Fowler and Ilise Lifring engage in an insightful conversation with Jenna Griffith, Vice President of Global Ad Operations at PayPal. The discussion centers around PayPal's strategic expansion into the advertising sector by leveraging its vast transaction data to build a robust media offering. The episode delves into how PayPal differentiates itself from traditional retail media networks, the role of transaction data in modern advertising, and the future landscape of programmatic ads.

PayPal’s Advertising Expansion

Jenna Griffith outlines PayPal's recent move to broaden its advertising capabilities beyond its proprietary platforms. By introducing programmatic ads that can be deployed across the open web, PayPal aims to offer brands a more versatile advertising solution.

Jenna Griffith [01:13]: "Given the large amount of transactions that go through PayPal every day… we really wanted to make sure that advertisers were able to utilize that graph not just in our owned and operated PayPal properties, but also in a curated set of media properties that they would like to run in that's most relevant for their consumers."

This strategic pivot positions PayPal as a significant player in the advertising world, utilizing its extensive transaction data to provide unique insights and targeting capabilities to marketers.

Leveraging Transaction Data: The Transaction Graph

At the heart of PayPal's advertising strategy is the concept of the "transaction graph." This vast dataset encompasses transactions from approximately 30 million merchants and 400 million shoppers, providing deep insights into consumer purchasing behaviors.

Jenna Griffith [01:13]: "Transaction graph brings both insight into what people are buying and what they might be interested in buying next."

The transaction graph enables advertisers to move beyond single-merchant data, allowing for cross-merchant insights that can drive category growth and brand share. This comprehensive view helps brands tailor their marketing strategies to better meet consumer needs and preferences.

Programmatic Advertising vs. Traditional Retail Media Networks

PayPal distinguishes itself from traditional retail media networks by not being tethered to a specific retailer. This flexibility allows non-endemic brands—such as those in automotive, entertainment, or insurance sectors—to benefit from PayPal's commerce insights.

Jenna Griffith [04:10]: "The uniqueness of what you can do with this cross merchant data I think goes all the way through to the Creative for sure."

Unlike retail media networks that are often limited to in-app or point-of-purchase advertising, PayPal's approach integrates seamlessly with broader advertising ecosystems, enhancing the relevance and personalization of ad creatives.

The Future of Ad Targeting Post-Cookies

With the decline of third-party cookies, PayPal's transaction data emerges as a potent new targeting currency. Jenna posits that transactional data offers a more deterministic approach to customer profiling compared to behavior-based models.

Jenna Griffith [06:12]: "This idea of transaction as the new cookie is, you know, very interesting."

Transaction data not only includes SKU information but also encompasses consumer identity, allowing for more precise and reliable targeting in an evolving digital advertising landscape.

Initial Feedback and Strategic Partnerships

PayPal has partnered with Publicis, one of the leading advertising agencies, to pilot its new off-site ad offerings. Although feedback is still emerging, initial responses indicate widespread interest across various advertiser verticals.

Jenna Griffith [07:17]: "The advertisers that are showing interest and excitement about how they can leverage this transaction graph insights for their own specific needs… really can tailor it to your unique needs as a brand."

This partnership underscores PayPal's commitment to creating versatile and scalable advertising solutions that cater to diverse marketing objectives.

Market Consolidation and AI Integration

Jenna anticipates a consolidation phase within the retail media network space, driven by the proliferation of specialized networks and the integration of artificial intelligence (AI). PayPal aims to position itself as a key consolidator by offering comprehensive data and scalable advertising solutions.

Jenna Griffith [12:52]: "I would like to say that that consolidation also, because it does benefit the buyer… we're in the sub-three-year, two-year, even space."

Moreover, PayPal is embedding AI into its ad operations from the ground up, enhancing processes like creative approvals and invoice reconciliation. This AI-first mentality enables more efficient and personalized advertising experiences.

Jenna Griffith [14:03]: "We're really trying to take that AI first mentality and… leverage tech that has not been so available in the past and, you know, take advantage."

Innovation in Ad Operations

PayPal is pioneering innovative approaches in ad operations by integrating AI and focusing on creating seamless, frictionless customer experiences. This forward-thinking strategy is geared towards not just automating processes but also enhancing the quality and relevance of ad content.

Jenna Griffith [15:39]: "Ad operations has such. It's just so well poised, particularly if you build it from the ground up with AI front and center in your mind rather than trying to retrofit processes."

This approach ensures that PayPal remains at the forefront of advertising technology, continuously improving its offerings to meet the dynamic needs of advertisers and consumers alike.

Future Directions and Final Thoughts

Looking ahead, Jenna expresses excitement about potential brand partnerships, particularly with luxury travel brands, to further diversify PayPal's advertising portfolio. She also highlights emerging trends like micro-communities, which focus on creating tight-knit consumer groups for enhanced engagement and brand building.

Jenna Griffith [18:01]: "I would probably choose some luxury travel brand like Auberge or One and Only…"

In discussing industry trends, Jenna emphasizes the importance of evolving beyond outdated tech buzzwords, advocating for continuous innovation in the advertising space.

Jenna Griffith [19:01]: "I would like us to almost leapfrog over what dynamic, what the 1.0 version of dynamic creative was… let's come up with a new one."

Key Takeaways

1. Leveraging Transaction Data: PayPal's expansive transaction graph offers unparalleled insights into consumer behavior, enabling more effective and personalized advertising strategies.

2. Beyond Retail Media Networks: As a non-retailer, PayPal provides unique advantages to non-endemic brands, broadening the scope and impact of programmatic advertising.

3. Post-Cookie Advertising: Transaction data is emerging as a robust alternative to third-party cookies, offering deterministic customer profiling and enhanced targeting capabilities.

4. AI Integration and Market Consolidation: AI-driven innovations and strategic consolidations are set to reshape the advertising landscape, with PayPal positioning itself as a key player in this transformation.

5. Future Partnerships and Trends: PayPal is exploring partnerships with luxury brands and embracing trends like micro-communities to stay ahead in the competitive advertising ecosystem.

Notable Quotes

• Jenna Griffith [01:13]: "Transaction graph brings both insight into what people are buying and what they might be interested in buying next."

• Jenna Griffith [04:10]: "The uniqueness of what you can do with this cross merchant data I think goes all the way through to the Creative for sure."

• Jenna Griffith [06:12]: "This idea of transaction as the new cookie is, you know, very interesting."

• Jenna Griffith [12:52]: "We're in the sub-three-year, two-year, even space."

• Jenna Griffith [14:03]: "We're really trying to take that AI first mentality and… leverage tech that has not been so available in the past and, you know, take advantage."

Conclusion

In this episode, Jenna Griffith provides a comprehensive overview of how PayPal is revolutionizing the advertising landscape by leveraging its vast transaction data. The discussion highlights the strategic advantages of PayPal's approach, the evolving nature of ad targeting in a post-cookie era, and the critical role of AI in driving innovation. As PayPal continues to expand its advertising offerings, it stands poised to influence the future of programmatic advertising and media business development.