In 2022 Uber launched its advertising segment, which comprises revenue from sponsored listing fees paid by merchants and brands in exchange for advertising on the platform. By the end of the year, Uber advertising had generated $500 million in revenue from 315K merchants.
By Q3 2022, it was clear that Uber’s advertising business launch had been a success.
Indeed, Uber’s advertising already generated $350 million by Q3 of 2022, right as it was launched.
For some context, Pinterest’s only revenue stream is advertising, which generated $684 million in the same period.
Recently, Uber launched a new ad format for brands to connect with consumers throughout the ride or delivery process.
Uber is shooting to generate over a billion dollars of advertising revenue by 2024.
As Uber explained:
”We have a global audience of valuable, purchase-minded consumers who, as part of our core business, tell us where they want to go and what they want to get,”
Said Dr. Grether, General Manager for Uber’s advertising division, further explained:
“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. By tapping into our mobility media network, our pilot campaigns have surpassed expectations in terms of brand lift, engagement, and other campaign goals. We’re eager to continue working with our partners to identify best-in-class offerings – such as in-car tablet advertising – that will ensure they’re engaging with captive and engaged audiences.”
But how does the advertising business work?
Currently, most revenues seem to come from the sponsored listings, on Uber Eats.
But Uber’s advertising platform comprises a few more formats.
The sponsored listing ad format consists of placements across Uber Eats to position a brand ahead of the competition and grab users’ attention, ready to purchase.
By 2022, Uber Eats (thanks also for the further contribution from ads revenue) reached almost $11 billion in revenue.
As Uber explains, this ad format is thought to capture consumers’ attention on Uber trips as they move with purpose by featuring ads that drive purchases and brand awareness.
The Uber Mobility platform is still the core business for Uber, which has used the network effects on this platform to launch other two segments (Delivery and Freight).
These comprise display ads for brand messages on the homepage of the Uber Eats app.
This ad format is thought for consumer packaged goods, which can display their products on the digital storefront of Uber.
With this ad format, merchants can feature their seasonal or specially priced menu items to entice consumers to take advantage of the promotional offer on top of Uber.
With this ad format, brands can prompt consumers as they await for their orders to go through.
Merchants on the Uber Eats platform can also promote exclusive offers for Uber and Uber Eats users through sponsored emails delivered directly to their inboxes.
Car Tops Ads
Another attractive format is the high-visibility digital OOH Car Top Ads (out-of-home opportunity, cartop advertising), which let brands message consumers based on location and time of day across top US cities and metro areas while transforming Uber’s cars, part of its network as moving billboards!