Uber is launching a new ad division to show ads to its users.
👉Background: Uber has had a rollercoaster ride of over the past couple of years. While its revenue has continued to grow, its share price has actually halved.
👉 What happened: But now, Uber is launching a new ad division called ‘Journey Ads’. The idea is to show ads across its ride-hailing app, Uber Eats app as well as in-vehicle digital ads.
👉 What else: Uber has 122 million-strong monthly active users and it has a pretty captive market inside the vehicles. The plan is to grow this division to a more than $1 billion revenue opportunity by 2024.
💡Eyeballs equal attention and attention equals ad dollars. News publishers learned long ago that ads can be their main source of revenue.
💡But more recently, we’re seeing other companies with large user bases fall back to ads. Netflix is rolling out ads shortly, Disney+ is doing it too.
💡It’s an interesting time to get into the ad game - when marketers are spending less money. And the ad revenue of the other big tech companies, like Meta, Snap and Twitter have all plummeted.
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