Deliveroo Rolls Out New Advertising Platform For FMCG Brands
Deliveroo launched a new advertising platform, ‘Deliveroo Media and E-commerce’, allowing brands to reach customers with relevant offers. Brands will be able to advertise to Deliveroo customers in new formats, in-app and online.
For the first time, advertising is planned on Deliveroo’s order tracker page alongside sponsored search listings. For example, a customer sitting at home impatiently eyeing the location of their food order on Saturday evening would sean an ad for a movie or series of a streaming service. The company mentions,
“Currently Deliveroo partners are able to make use of Deliveroo’s advertising services, with sponsored positioning for restaurant or grocery partners, for example. The new advertising platform means consumer FMCG brands will be able to advertise to millions of highly-engaged Deliveroo customers.”
Brands will be able to promote relevant offers across Deliveroo’s app, on its website, social media, email, and push notification campaigns.
Its own network of “Editions” kitchens and rapid grocery delivery ‘HOP’ stores will also be part of Deliveroo’s new advertising proposition, enabling brands to deliver content or samples into consumers’ hands as their meals and groceries are delivered to their door.
Revenue opportunity
The food delivery startup allows restaurants and supermarkets it partners with to purchase advertising space within its walls. The new platform expands opportunities for consumer brands (CPG) and contributes to the company’s profitability push. By using ads to improve sales and profitability, Deliveroo has joined the growing number of delivery companies. Eric French, Chief Operating Officer at Deliveroo said in a statement,
“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.”
He also stated that the app’s eight million monthly active consumers orders on a weekly basis, giving advertisers an opportunity to connect to an engaged and valuable audience.
“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.”
The company said advertising revenue is an important lever to drive Deliveroo’s path to profitability and free cash flow generation. Deliveroo aims to reach an adjusted EBITDA margin (as % of GTV) of 4%+ by 2026, with further upside potential beyond 2026.
Adtech and media sales services will be provided by Criteo to Deliveroo.
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And the trend continues
Many delivery services and supermarkets like Asda Media, Tesco Media, Joker, and Delivery Hero SE are building their retail media network. They seek to use the first-party data and monetize the media inventory. The company stated,
“Advertising on Deliveroo will include partnerships with restaurant partners as well as FMCG companies, primarily on the grocery side. This will be done in a way that is mindful of the consumer experience, which is Deliveroo’s priority.”
Deliveroo Media and Ecommerce will launch in the UK before rolling out to other markets globally. From this month, brands started advertising relevant offers to Deliveroo customers too.
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