Glovo, a provider of multi-category apps, has launched Glovo Ads. The new solution is designed to support brands, restaurants and shops to accelerate their business growth, engagement and sales between users. Global data and business intelligence analyst Statistica has estimated retail media spending estimated to reach €25 billion by 2026. Furthermore, increasing numbers of consumers are already using delivery apps.
Marketers can use searches, homepage listings and sponsored placements throughout the customer journey until checkout to target consumers with relevant ads while on the app. Users can also buy across different categories including takeaway food – from gifts or beauty products to groceries and electronics. Non-FMCG brands can use Glovo Ads to engage consumers too.
Already, companies such as Coca-Cola, Diageo, Pernod Ricard, Pepsico, Red Bull have built Glovo into the marketing stack. Multinational advertising companies like Publicis are also working with their clients to market through the app.
Multinational brands to corner shops
Both, large multinational brands and small independent shops can use Glovo’s services through two specific platforms:
- Through Brands Ads, marketers can use auto-bidding. This advanced automation solution optimises the bidding process. It uses the learned conversion rate over time and the product price to calculate the expected value of the impression. Glovo says through auto-bidding, and the rest of the “Brand Ads” suite of tools, brands can achieve up to 5x Return on Advertising Spend (ROAS).
- With Partner Ads, small and medium-sized shops and restaurants are guided as to the best placement within the app. To ensure the highest return on investment. Many businesses don’t have dedicated marketing teams. Partner Ads is designed to start advertising easier with any budget on a pay-per-click basis. It’s self service approach can be paused at any time to ensure partners always see a positive return on investment.
Glovo Ads will also provide off-app services, enabling both brands and smaller retailers to reach users through programmatic buying. Brands can also see how their campaigns are performing in real time. Enabling them to adjust their spend to target consumers accordingly both on and off app.
Deploying campaigns across the marketing funnel
Rodrigo Alier, Executive Director Partners & Brands, explains: “Glovo Ads was designed to help multinational marketers and agencies. To provide them with the tools they need to deploy campaigns across the marketing funnel. Additionally support businesses to drive sales in their local area. Millions of users regularly buying a dynamic range of products thanks to our multi-category offering. We can help these businesses to build brand awareness and grow sales at a time when it is becoming significantly more challenging to reach customers effectively.”
Celso Borges, Vice President & Head of eCommerce Pepsico Europe said: “We see Glovo ads as an opportunity to deepen our partnership with Glovo in a strategic manner. The opportunity to be able to reach consumers throughout their shopping journey is critical. As a brand with impulse categories cart media is helping us drive incrementality. We see the media options available both helping us drive our brand objectives but also conversion to sale.”
Enterprise Times: What this means for business.
The cost-of-living crisis and rising prices putting pressure on both disposable consumer income and business margins. As a result, Glovo’s new solution is attractive to a wide range of brands and retailers. Industry analysts have estimated that only 20% of merchants globally conduct their business online. This highlights the need for brands and retailer to find new and innovative routes to digitisation.
From large multinational brands, boutique niche players to independent corner shops can make use of Glovo Ads to reach millions of consumers across the countries Glovo operates. Retailers and brands can deploy Brands Ads to target users both on and off app, users. Glovo says they can gain up to five times ROAS. Restaurants and small businesses can also use Partner Ads to easily run ad campaigns and increase local sales. This is definitely an interesting innovation that worth keeping an eye on.