Uber is expanding its advertising business by creating an ads division dedicated to drive in a $1 billion revenue in the company by 2024.
The ride hailing company has announced that it will be selling ad spaces to let marketers target riders at any point of their journeys, according to The Wall Street Journal.
Uber Is Finally Joining In On The Ad Bandwagon
Uber has unveiled its global advertising unit which will display promotions within its application from the moment customers hail a ride, to the moment they arrive at their destination.
The new ad-targeting feature will place brand advertisements using the rider's data, including their recent travel history and precise geographic locations and destinations.
These ads will be displaying personalized promotions with the app, using first party data for targeting advertising that may potentially appear on multiple screens through Journey Ads.
Journey Ads is Uber's attempt to acquire more revenue next year through in-vehicle digital ads, sponsored mails, and storefront ads.
The company's ad division, which will be responsible for Journey Ads, is led by former Amazon advertising executive Mark Grether.
In an interview with the Financial Times, Grether says that the ad division can help brands build and foster relationships with consumers by connecting with them.
With this, Uber is also introducing ads on the Uber Eats app through sponsored listings that will show in-menu and post-checkout ads, and even billboard ads on the homepage.
The integration of ads in the Uber apps follow a company expansion effort to monetize its audience of 122 million monthly users, according to Financial Express.
The app assures users that the company will not share individual data with advertisers to keep their customer safe from a breach.
Read More: Uber Will Show Drivers How Much They Will Earn and Where They Are Going Before Accepting a Trip
Uber Provides More Details About The Ads
In an attempt to cash in on its audience by tapping in on high-margin revenue streams, Uber is competing with similar apps like Lyft and Doordash with Journey Ads.
To let customers understand the implications of the new program, Uber provides users with more comprehensive details about the advertising options that may appear in their apps.
Uber Investor details that Journey Ads are ads that capture consumers' attention with prominently placed Sponsored Listings to get brands ahead of competition.
These brands will be able to promote exclusive offers to Uber users by sending emails directly into their inboxes with Sponsored Emails.
On the other hand, Storefront Ads are prominently placed at the top of digital storefronts, while Homepage Billboards are displayed on the homepage of the apps.
Uber believes that understanding these advertising schemes will help brands connect with users globally, along with the company's efforts to create more impactful campaigns as well.
Furthermore, the company says that accessing their mobility media network through their pilot campaigns will ensure partners that they are engaging and captivating their audiences.
