Uber Looks To Increase Revenue With Addition Of New Digital Advertising Division
“Through our advertising division, we can help leading brands grow their relationships with consumers by connecting them at a moment when a customer is uniquely attentive.”Dr. Grether, General Manager, for Uber’s advertising division
If you’ve seen the news today, then you’ve likely read about Uber launching itself into the world of digital marketing. If you haven’t, then you’re in luck! You can read their release here. Over the course of the day, various news outlets picked up the story. Sources such as Reuters, Yahoo Finance, and The Globe and Mail are just a few places you can read all about it. You can also take a look at Bloomberg, where Jackie Davalos shares the run-down. Now, let’s discuss what what this all means.
The Impact of Digital Marketing
Let’s start by stating the obvious. Uber is looking to boost their digital ad revenue through business relationships with brands and/or marketers. Essentially, this means that Uber is going to collect income from brands that are able to pay for sponsored listings and priority placement on check-out and homepages, among other things. With a monthly audience of 122 million users around the world, Uber has the reach to accomplish this. They also have the platform. Unsurprisingly, they also have the resources to build lucrative marketing relationships.
For instance, Uber’s Journey Ads will run advertising for ride-share users who are waiting for their driver. Journey Ads will also be able to do this during the user’s trip. Consequentially, with ad space available in Uber’s ride-hailing and delivery apps, as well as digital ads in vehicles, sponsored mail, and storefront ads, the targeted revenue goal of $1 billion by 2024 doesn’t seem entirely unreasonable.
Journey Ads is hailed as “an engaging way for brands to connect with consumers throughout the entire ride process”. As such, the plan is to connect the brand and customers at a time when the customer is “uniquely attentive”. In a day and age where advertising, digital marketing, and creating the ideal user experience is a highly competitive market, what makes them think this will work?
How Uber Shows that Digital Marketing Works
Well, with over 40 brands already partnered and their preexisting captive audience, that is quite a lot of attention. Additionally, if we were to take a look back at advertising basics, and apply those basics to the conceptualization of digital marketing, we start to understand something important. By building experiences in the metaverse (more on that here) and analyzing them, companies can dig into the heart of why their customers choose them. Moreover, companies could then create user based experiences that motivate individuals to participate with the brand. More importantly, customers can form long lasting relationships with the company itself.
Ultimately, this dynamic is exactly what Uber is looking to facilitate. In reality, it’s something established digital marketing companies have been doing all along.
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