From July, 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. For the first time, advertising is planned for Deliveroo’s order tracker page, with new formats to launch over the coming months, alongside sponsored search listings.
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.
Deliveroo’s network of delivery-only ‘Editions’ kitchens and rapid grocery delivery ‘HOP’ stores are also part of Deliveroo’s new advertising proposition, enabling brands to get relevant content or samples into consumers’ hands as their meals and groceries are delivered to their door.
Eric French, Chief Operating Officer at Deliveroo, said: “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. 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.”
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.
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. Consumers will continue to receive a food-first experience in-app and Deliveroo intends to provide more space to enable restaurant and grocery partners to tell their story emotionally and effectively to Deliveroo consumers via the platform. The advertising solutions will sit within this context.
With a food delivery marketplace in 11 markets, and with over 170,000 restaurants and close to 13,000 grocers on the platform, Deliveroo Media and Ecommerce is well positioned to connect brands with over eight million monthly active consumers.
Deliveroo Media and Ecommerce will launch in the UK before rolling out to other markets globally, with Deliveroo working with Criteo, the Commerce Media company, who will supply the advertising technology and media sales services.