Uber’s $1 billion ad business expected to remain untouched amidst Google’s third-party cookie fallout
By Kimeko McCoy • August 9, 2024 •
Ivy Liu
Uber Ads is having an correct stride. For a two-twelve months-old venture, Uber’s advert change is expected to reach its $1 billion revenue blueprint this twelve months, in step with its stride rate, in step with the corporate’s Q2 earnings describe released earlier this week.
Google’s left set off its third-occasion deprecation belief, now leaving users to contain if they must always be tracked, isn’t expected to fabricate Uber take its foot off the gasoline anytime shortly. Uber is positioning itself as insulated from Google’s cookie fallout, holding its cost proposition around its first-occasion recordsdata, location-based fully user insights and world scale entrance and center.
“No topic Google’s risk is, that’s their change,” Paul Wright, head of world at Uber Advertising told Digiday. “First-occasion recordsdata that retail media networks had been producing no doubt is a ways extra highly efficient [than third-party cookies] when it comes to performance.”
Sharp about Uber’s vantage point, in step with three company pros Digiday spoke with for this memoir, it’s an even effect to take. The bound-sharing app sells diverse advert codecs, including adverts that appear in Uber and Uber Eats apps, emails, cartops and in-vehicle capsules. And encourage in June, Uber opened the doors to programmatic buying across its rides app. It’s a closed loop ecosystem in which Uber operates within its walls, per company pros, leaving Uber insulated from the cookie fallout.
“That’s fully bulletproof,” stated Jon Morgenstern, evp, head of investment at VaynerMedia. Now not lower than that’s the case as a ways as cookies are concerned, he added. “Even when that stuff became once picking up the heat, the temperature became once rising, owned and operated is light is light accurate.”
No topic where the cookie lands (and the draw many Chrome users prefer to opt in) advertisers are light ready to invest within the rising retail media network residing, which now has extra than 200 contenders, in step with Mimbi, a retail media intelligence platform. Critically, advertisers are grappling with the inflow with greenbacks handiest stretching to duvet so many advert networks, alternatively it hasn’t stopped them from dishing out greenbacks. World retail media spending is determined to surpass $150 billion, in step with the World Advertising Compare Heart (WARC).
“Uber is sitting on somewhat lots of precious recordsdata, especially amongst a in fact coveted cohort, which is this Gen Z, millennial personnel of people which would possibly perchance perchance be very elated the spend of the Uber platforms, whether it’s for transportation or consumption of goods or purchases,” stated Jennifer Kohl, chief media officer at VML advert company.
Uber isn’t alone in its presumed insulation. Utterly different retail media networks will seemingly replicate its strategy because the destiny of the cookie continues to come into focal point. All stated third-occasion recordsdata is below scrutiny, making stores’ first-occasion recordsdata delight in gold for advertisers. And as long as retail media networks are dishing out their owned buyer recordsdata for advertisers to purchase adverts on their owned media channels, they’re reasonably sheltered from Google’s third-occasion ripple results, per company pros.
“There’s no going encourage. The harm has fabricate of been performed. The disruptions took residing,” Morgenstern stated, referring to retail media’s growth spurt. “And so there’s some reduction [in finding alternative identifiers], however the Ubers of the realm are completely light going to again.”
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