Uber to play in-car ads during journeys

‘Cars will become our next living rooms,’ Uber’s manager of advertising claims

(AFP/Getty)

Uber has announced that it will start playing ads to riders during journeys as a way to increase revenue.

The company claimed it was “an engaging way for brands to connect with consumers throughout the entire ride process”, adding that “Journey Ads place relevant brand content and offers in front of purchase-minded audiences as they transact throughout their journey – while waiting for their driver and during their trip.”

As well as Uber rides, ads will also appear on Uber Eats. These include sponsored listings and emails, ads on the homepage, post-checkout ads, and ads in the menu.

“Cars will become our next living rooms,” Mark Grether, general manager of Uber Advertising, told the Wall Street Journal. “We spend eight hours a week in a car; it’s a huge advertising opportunity.”

Uber will use advertising data based on riders’ recent travel history and their precise geographic destinations – meaning if a user books a car to a cinema or shop, they could start seeing ads based around that location.

The company claims that it does not share individual user data with advertisers; rather, the data it does share is aggregated and users can opt out of targeted ads.

Uber’s announcement comes after Uber’s top competitor in the United States, Lyft, officially launched its own advertising division in August.

“While these consumers are making purchase decisions and waiting for their destination or delivery we can engage them with messages from brands that are relevant to their purchase journeys,” Mr Grether said,

“With 1.87 billion trips last quarter, that means we can connect advertisers to consumers on average five times per month across rides and delivery.”

The ride-hailing apps are not the only ones adding adverts into its product in order to increase revenue. Netflix recently announced a low-cost subscription supplemented with ads that will launch next month.