How Deliveroo plans to expand its ad platform

How Deliveroo plans to expand its ad platform

Following a challenging two years marked by a pandemic-induced boom followed by a reported £308 million loss in 2021, Deliveroo turned to advertising to regain its footing. With 18 million monthly active users and 200 million impressions, Deliveroo’s app presented a largely untapped inventory for restaurant brands seeking to engage potential buyers at the point of consideration.

This move was a significant part of Deliveroo’s diversification strategy, with a promise to reach an adjusted EBITDA (earnings before tax) of 4%+ by 2026.

Initially launched for restaurants in 2021, Deliveroo’s advertising platform expanded to include FMCG, CPG, and entertainment brands last year.

According to Adam Bishop, Deliveroo’s vice-president of advertising, the platform has been performing exceptionally well. He noted, “It’s in line with our expectations if not slightly ahead.” Furthermore, return rates for advertisers using the platform regularly exceed 90%.

Deliveroo’s advertising offering extends both on and off the platform. Off-platform opportunities include advertising on social media, CRM, push notifications, product sampling, and flyers. Bishop emphasized the localized and data-driven nature of the quick-commerce business, highlighting the multiple physical interactions Deliveroo has with consumers on a minute-by-minute basis.

Bishop’s strategy revolves around enhancing the consumer experience, ensuring that the introduction of ads improves or, at the very least, does not negatively impact the overall experience. He emphasized the importance of a thoughtful and iterative approach, stating, “If we see any risk that we’re doing something that might degrade consumer experience, we immediately row back and start again.”

While Deliveroo primarily collaborates with restaurants, FMCG, and entertainment brands, it remains open to advertisers from various sectors. However, the company is selective about where certain brands will appear, prioritizing relevance. Bishop added, “We hold a pretty high bar in the order flow in how we think about relevancy.”

Deliveroo’s advertising journey reflects its commitment to recovery and long-term growth, leveraging its extensive user base and strategic ad placements to provide a valuable platform for both consumers and advertisers.

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