Starting this week, Uber is introducing video ads in its apps: Uber, Uber Eats, and Drizly. According to The Wall Street Journal, these ads will appear while you wait for your ride, during the ride itself, after placing an order on Uber Eats, and while browsing Drizly. Essentially, they will be displayed in almost all possible places.
Certain Uber cars will be equipped with tablets that show ads throughout the entire trip. The rollout of video ad products will initially take place in the USA, followed by later introductions in the UK, Australia, and France.
These ads can be as long as 90 seconds and will be customized for each Uber user by tracking their location and purchase history. For instance, if your ride passes by a particular restaurant, you may see an ad for it on the app or in the in-car tablet. You will have the option to disable the sharing of specific data, such as gender or ride history, but you can not choose to disable ads altogether.
One thing users can do while riding in a car with installed tablets is mute the sound of the ads, which is at least something. The ads on the apps will be muted by default. While this news might not be very appealing to users, Uber plans to continue expanding its retail media networks.
Retail media networks are consumer-oriented companies that offer advertising platforms that use their own customer information to assist brands in delivering targeted messages. Marketers now have various options for these platforms, including not only Uber but also Lyft, Walmart, Marriott, Kroger, and CVS Health.
Uber’s apps have previously featured static display ads, but with the introduction of video ads, the company aims to achieve its goal of $1 billion in ad revenue by 2024. In the last quarter of 2022, Uber had 315,000 merchants who purchased ads through its apps, and this number increased to 345,000 in the first quarter of 2023.
