Delivery company, Glovo, has launched a new advertising campaign dubbed ‘Glovo Ads’ for their partners and local brands in Kenya.
Glovo’s retail media spending is expected to hit $27 billion by 2023 and a steadily increasing customer base. The company’s presence in the 25 countries it operates in has enabled 350 FMCG (Fast-Moving Consumer Goods) brands and 5,000 restaurants and stores to connect with millions of customers using its platform.
Glovo’s commercialization strategy also allows marketers to effectively target consumers with relevant advertisements. This is achieved through searches, homepage listings, and sponsored placements throughout the customer journey until checkout to target consumers with relevant ads while on the app.
Glovo Ads offers two specific platforms for both local businesses and large multinational brands:
- Brands Ads: This platform enables marketers to utilize auto-bidding, an advanced automation solution that optimizes the bidding process using historical conversion rates and product prices to calculate the expected impression value. The suite of tools under “Brand Ads” can potentially yield up to 5 times the Return on Advertising Spend (ROAS), providing significant value to brands.
- Partner Ads: Designed for small and medium-sized shops and restaurants, Partner Ads assist in determining the best placement within the app to maximize return on investment. Recognizing that many of these businesses lack dedicated marketing teams, Partner Ads allows them to start advertising with any budget on a pay-per-click basis. This flexibility ensures positive returns and the ability to pause campaigns as needed.
At the moment, local companies like Coca-Cola, Diageo, Pernod Ricard, Beiersdorf and Barcadi have incorporated Glovo Ads. Additionally, multinational advertising companies like Publicis are also working with their clients to market through the app.
“With our users regularly buying a dynamic range of products thanks to our multi-category offering beyond just takeaway and grocery shopping, we can help both brands and local businesses to build brand awareness and grow sales at a time when it is becoming significantly more challenging to reach customers effectively,” said Caroline Mutuku, General Manager for Glovo Kenya.