Deliveroo has linked up with connected commerce marketing firm SMG to drive the growth of its advertising and media offering for FMCG brands and non-endemic advertisers.
The partnership aims to enhance the Deliveroo Media unit to meet the growing need from advertisers and agencies to be present in “hyper-relevant moments when consumers are most receptive”.
With over 7m monthly global users and around 186,000 restaurant, grocery and retail sites delivering around 300m orders per year, Deliveroo has seen strong growth in its advertising business since its launch in 2022. Ad revenue as a % of GTV increased to 1.4% in the final quarter of 2024, with the business working towards a target of 2+% GTV in 2026.
Over the last year, Deliveroo has launched new features and enhanced targeting, increased relevance using machine learning models, and introduced new formats for non-endemic brands. In 2024, this led to a 15% increase in merchants placing ads and 90% of all firms who placed an ad returning to place another within a month.
Since launch, Deliveroo has also worked with major FMCG brands, including Coca-Cola, Pepsi, and Heineken, as well as entertainment giants like ITV and Sky, who have leveraged Deliveroo’s media capabilities and audience to drive targeted campaigns.
The SMG partnership is expected to play a key role in accelerating Deliveroo Media in the UK & Ireland, bringing its expertise from running media networks for retailers like Boots, Co-op, Morrisons, Asda, The Very Group, and, most recently, WHSmith North America.
Deliveroo noted that as the quick commerce sector continues to expand, it offers more opportunities for FMCG advertisers to influence purchase decisions based on real-life needs. Examples include forgotten beers during a big game, an impromptu birthday party, a quick grocery top-up, or a last-minute gift.
“I’m really proud of the advertising business we’ve built over the last three and a half years – and the strong growth we’ve seen,” said Carlo Mocci, Chief Business Officer at Deliveroo.
“Our advertising offer is built on great fundamentals – every one of the 300 million orders we receive a year are for high-intent consumers, and each one of these orders has the potential to have an ad tied to them. We’ve already worked with thousands of merchant partners, and some of the world’s biggest brands – helping them to tap into specific consumer moments and drive strong returns. As we look to the future, we’ll offer enhanced user targeting, better campaign insights and new formats to advertisers.
“I’m excited to partner with SMG to drive further uptake in FMCG and non-endemic advertising, and seize the opportunities ahead of us as we continue to grow our advertising business.’
Sam Knights, CEO of SMG, added: “It’s becoming increasingly clear that different commerce media networks can deliver highly differentiated and powerful opportunities, and SMG is truly excited about the potential for Deliveroo Media to leverage its position as a recognised leading hyperlocal food delivery marketplace. The sheer congestion of messaging in our daily lives means brands must focus on moments of true receptivity.
“Deliveroo Media offers brands the capability to connect in moments when it is truly meaningful. We’re excited to be using our 16 years of expertise in running media networks to maximise the opportunity for Deliveroo Media.”
NAM Implications:
- “hyper-relevant moments when consumers are most receptive”.
- And what could be a more relevant moment than answering the hall door?
- Thinking about it: ‘every one of the 300 million orders we receive a year are for high-intent consumers, and each one of these orders has the potential to have an ad tied to them’
- Worth a try for highly personalised persuasion?
