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Deliveroo to open up ad spaces within platform from July

Deliveroo to open up ad spaces within platform from July

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Food delivery platform Deliveroo is making a move into the advertising business with the launch of its new Deliveroo Media and Ecommerce platform in July. The platform, which marks the platform's selling of ad paces for the first time, will provide access for advertisers on its app and website and is created to increase its sales and profitability. 

In a press statement, Deliveroo said that while it already provides its partners with the opportunity to purchase some advertising space, the new platform will also provide opportunities to consumer FMCG brands. Brands will be able to advertise to Deliveroo customers with relevant offers across its app, on Deliveroo’s website and as part of social media, email and push notification campaigns. With the new offering, ad spaces will be made available onDeliveroo’s order tracker page. New formats will also be launched over the coming months, alongside sponsored search listings. According to Deliveroo, while consumer experience will remain its main priority, advertising solutions will sit within this context. 

Moreover, the platform will enable brands to add samples and other items to customers’ orders placed within Deliveroo’s “editions” kitchens or rapid grocery “hop” centres. The new offering will be first launched in the UK before being rolled out globally. Deliveroo did not share more details on when the service will be made available in Asia. 

Technology and media sales services will be provided by Criterio SA, a global commerce marketing technology company.

Deliveroo’s chief operating officer, Eric French, said that advertising revenue comprises a small part of Deliveroo’s current model. However, it has untapped potential to increase Deliveroo’s net revenue. "Deliveroo has over eight 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,” he added.

A week ago, it had also named VCCP as its new creative agency, where VCCP was tasked to reinforce Deliveroo’s passion for food and the value that Deliveroo brings to the lives of Singaporeans. Minjoo Lee, head of marketing at Deliveroo Singapore had said, “Since entering the market six years ago, Deliveroo has successfully built a strong brand presence in Singapore. We chose VCCP Singapore for their passion and creativity and are excited to see how our partnership will drive Deliveroo to the next level of our journey.”

In Asia, Deliveroo faces competition in the food delivery space from the likes of foodpanda and Grab - who both provide marketing and promotional opportunities within its app. In Southeast Asia, Grab is a dominant player having a presence across numerous markets, covering verticles such as transport, fintech, gifting, food delivery and many others. 

According to Temasek, the pandemic was a catalyst “for users to adopt new digital services and increase the frequency of usage and spending in these services.” It added that the prolonged lockdown saw an increase of the usage of food delivery apps, making it the most penetrated digital service. Temasek has also found that the adoption of digital services has been a one-way street, with no signs of reversal. It is now a way of life for Southeast Asians, with super apps leading that charge.

(Picture courtesy: Shutterstock)

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