5 min read

Newsletter Edition #39: "Quick Commerce, Big Ads"

Holly Shuffett
Holly Shuffett
Updated on
October 1, 2024
Kevel Newsletter

Ad Tech Insights

How To Combat Low Margins

The story: Quick commerce businesses, like Gopuff and Delivery Hero, are increasingly turning to advertising as a way to offset the challenges of low margins and high customer servicing costs. In his newsletter, Fix Insider, Founder Simon Andrews highlights that while quick commerce offers convenience, the business model is difficult due to low average order values. To stay competitive, companies like Gopuff are taking control of their advertising capabilities by building their own ad tech infrastructure and using AI to leverage first-party data. Gopuff’s strategy reflects a growing trend among retailers looking to create long-term, sustainable growth. 

Delivery Hero, another major player in the quick commerce space, is also betting heavily on advertising. With operations in over 70 countries and a variety of brands, Delivery Hero had the demand to build an advertising empire. The quick commerce brand expects advertising to become a key revenue stream, projecting over €2B in ad revenue by 2024 - 2025. 

The takeaway: The shift towards in-house advertising strategies highlights the advantages of owning your entire tech stack, especially in highly competitive sectors like quick commerce and delivery. The increasing role of AI and first-party data can help companies differentiate, but the challenge of scaling across different markets also underscores the need for localized expertise. 

READ MORE.

Extra Industry Insights

Omnichannel ad platform Skai recently published its Q2 2024 Digital Marketing Quarterly Trends Report. Here’s what you need to know:

IAB Europe’s Retail Media Committee developed the Attitudes to Retail Media survey, which is in its first year, and is intended to provide an industry benchmark for retail media adoption, drivers, barriers, and growth areas. Here’s what the survey found: 

Kevel Catch-Up

“The Most Successful Business Leaders To Watch In 2024”: Kevel’s Puja Bhola Rios

The business world is dynamic and outsmarting the competition requires proactive leadership. We are elated that The Enterprise World has recognized one such proactive leader, Puja Rios, Kevel’s President & Chief Operating Officer, by featuring her on the cover of their latest issue, “The Most Successful Business Leaders to Watch in 2024.” 

Check out the full cover story here

Keep Learning

WATCHSeason 2 of The ADOTAT Show kicks off with ad tech legend, Terence Kawaja, talking all things cookie-pacalypse, signal loss, and privacy. This hour-long episode is packed with “more no-BS insights than ever.” 

READMadison and Wall forecast $397B in 2024 ad spend. However, despite their rhetoric, marketers are emphasizing 'performance' over quality content. 

LISTEN Covering Google’s ad tech antitrust trial in Virginia is surreal for anyone who’s been in ad tech as long as Ari Paparo. He knows most of the people on the stand. Join Allison Schiff and Ari in this episode of AdExchanger Talks. (Listening time: 51:08). 

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