Jun 15, 2021 - Economy

Scoop: Gopuff launching an ads biz


Gopuff, the $9 billion food delivery startup, is launching its own ad network, sources tell Axios.

Why it matters: It's the latest delivery giant to use advertising to boost revenues and increase sales. Insider reported Monday that rival Instacart is quietly building a $1 billion ads business.

Details: The Philadelphia-based company has created an in-house advertising team that is building ad products and working to onboard marketers, sources say.

  • Its ad network will be customized for consumers and marketers based on the delivery company's local inventory. Ads will only be shown to consumers based on what's available nearby.
  • The company is pitching brands that they will be able to deliver advertised products within a half hour of consumers seeing and engaging with an ad on its platform.
  • Advertisers can target consumers in a number of ways, including display ads outside of the app via ad network partnerships with third-parties, like The Trade Desk, as well as in-app ad placements, like messaging ads, sponsored products and search result ads.

The big picture: Ecommerce giants like Amazon, Alibaba and Walmart have long used ads to increase consumer spend and retailer engagement on their platforms. More recently, grocers like Kroger and Albertsons have also begun launching their own ad solutions.

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