The Creativ Brief: Ads Come to Ridesharing and Digital Grocery
Lyft and Uber recently announced they are bringing advertising to their platforms.
For the ridesharing apps the calculus to add advertising was simple - the app boasts millions of users, consumer specific datasets on credit card type, location, and spending habits, and a captive audience.
As both rideshare apps struggled to make money from the rider fees alone, facing backlash for raising prices and underpaying drivers, advertising provided them found money against users they already have.
A similar model has sprung up around Instacart, the grocery delivery app. Margins and price sensitivity from consumers have made making money from pure-play grocery delivery a challenge. Enter the ads - sponsored grocery items that appear to consumers when people are shopping through the app.
Much like retail media, which charges brands for placements like end caps or instore promotions, Instacart has learned that advertising can make up for revenue shortfalls in digital grocery delivery.
In both cases, advertising can be targeted and hype relevant to consumers. These new ad formats will hopefully be a victory for businesses operating on thin margins and consumers looking for a relevant treat.
3 Stories Dominating Media and Tech Headlines
Lyft utilizes a combination of in-app advertising, video ads, in-car tablets, and roughly 800 digital rooftop screens on cars as well as out-of-home placements to help differentiate its offering in the market. Lyft uses proprietary first-party data to target audiences using payment method, ride history, ride area, geography and lifestyle in order to segment to audiences by interests and demographics.
Why it matters: With a unique combination of valuable first-party data, an array of innovative ad spots, and a captive audience, advertising will be a major portion of ridesharing apps revenue in the foreseeable future. Look out for more ads in your next Uber or Lyft.
Adobe has Signed a 3 year Deal to be the New Lead Women's FA Cup Sponsor. With the goal of helping clubs express their stories on social, celebrate players and clubs, and drive more interest in the game, Adobe is providing access to Adobe Express, its AI-driven content creation app, to all 460 clubs in the tournament.
Why it matters: This partnership brings the FA Cup the opportunity to reach and engage new audiences for the women's game which could bring more sponsorship dollars to clubs down the line. It also provides a fertile testing ground for Adobe's new suite of AI-generative tools.
After 151 years, Popular Science will no longer produce a publication.
Cathay Hebert, the communications director for PopSci owner Recurrent Ventures, stated that “content strategy has to evolve beyond the digital magazine product”. Popsci will move towards commerce, video, and other initiatives to produce content that aligns with their mission.
Why it matters: PopSci announcement coincides with cutting their entire editorial staff. A loss for science journalism as a whole. This news follows similarly concerning editorial cuts at Nat Geo, Adweek, Vox, and more.
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Stat of the Week - Rideshare App Usage Expands
Chart by Miles Mahoney
Over the next 4 years, total Uber and Lyft users are expected to increase by roughly 7.3 million and 4.3 million respectively.
As user bases increase, rideshare apps will look to advertise to riders using variables such as consumer specific data sets, credit card type, location, and geography to name a few.
Both rideshare apps have struggled to make money from rider fees alone. Expect new innovative advertising models from Uber and Lyft as they seek to capitalize on user growth in the coming years.
One Fun Thing - Christmas Jingles are Back
The world of advertising brings us various unique Christmas ads during the holiday season; however one thing is clear the jingle is back.
Celeste performs this heartfelt jingle for Coca Cola, “Anyone can be Santa”. A reminder to lend a helping hand during the holidays.