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Deliveroo expands marketing capabilities with new ad platform

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By Chris Sutcliffe | Senior reporter

June 29, 2022 | 4 min read

Deliveroo is launching a new advertising platform designed to allow brands to reach audiences hungry for relevant offers.

The formats are planned for the delivery app’s order tracker page over the coming months, alongside sponsored search listings.

The delivery tracker screen is currently unused real estate, despite being arguably where users spend most of their time. The move is in service of broadening the range of brands that will be able to advertise on Deliveroo.

Deliveroo hails 2021 an "extraordinary year" with sales jumping 70%

The move is in service of broadening the range of brands that will be able to advertise on Deliveroo

The company mentions other FMCG goods in addition to the takeaways that were the original core offering of the app. “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.”

It is also a tacit acknowledgment that Deliveroo is attempting to diversify its revenue sources. It aims to reach adjusted EBITDA of 4%+ by 2026, with “further upside potential beyond 2026” – a step on the app’s journey to profitability. In 2021 the company reported a loss of £308m.

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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 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 while ensuring Deliveroo customers continue to receive a food-first experience.”

In addition to the ads, Deliveroo is incorporating physical items into its plans to allow other brands to market to its users. Its network of delivery-only ‘Editions’ kitchens and stores is 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.”

Deliveroo is partnering with Criteo, which will supply advertising technology and media sales services. The Deliveroo Media and Ecommerce tools will launch in the UK before rolling out to other markets globally.

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