Deliveroo will be adding more specific advertising opportunities for brands, with a new program called Deliveroo Media and Ecommerce, a company press release said Wednesday (June 29).
The new ad platform will allow fast-moving consumer goods (FMCG) brands to advertise to Deliveroo’s many customers. The company’s advertising opportunities will include partnerships with both restaurants and FMCG companies, and will let customers get “more space to enable restaurant and grocery partners to tell their story emotionally and effectively to Deliveroo consumers via the platform.”
Deliveroo Media and Ecommerce will debut in the U.K. before appearing in other markets.
Ads will be posted on Deliveroo’s order tracker page, adding new formats to debut soon too.
Deliveroo partners will have the ability to use the advertising services, along with sponsored services for restaurant or grocery partners or other businesses.
“Advertising revenue is a small part of Deliveroo’s current model but a big opportunity and a lever the company can pull to increase net revenue,” said Eric French, chief operating officer at Deliveroo. “Deliveroo has over 8 million monthly active consumers, many of whom are ordering with us on a weekly basis, so we have an engaged and valuable audience for brands to connect with. Our new advertising platform will enable restaurant and grocery partners to tell their story emotionally and effectively whilst ensuring Deliveroo customers continue to receive a food-first experience.”
Deliveroo has said its earnings this year might be affected by consumer behavior changed by the economic conditions..
PYMNTS wrote that Deliveroo and other delivery companies often see profitability coming at the expense of growth. As the platforms chase scale, it’s often difficult to recruit drivers and keep consumers transacting with the most frequency possible.
Because of the changing and difficult economic winds, including record-high inflation, Deliveroo has said as much in its first-quarter earnings report on April 13, Deliveroo said it thought customer behavior might be less robust going forward.
Source: www.pymnts.com