now serves ads on its mobile app
This week, Lyft is launching its first ads on the app.
Advertisements will appear as consumers wait for a taxi, while they are matched up with a driver and throughout the entire journey.
The company also plans to launch video ads in the app in later this year, in addition to exploring ad products like in-car screens.
How it works Lyft users will receive targeted ads based on data collected from payment methods, rides histories and lifestyle segments. Users can opt out from targeted advertising but not being served ads.
Why it’s important. Relying on a single platform or channel too much can be financially devastating. There is the risk that customers will become annoyed if they receive too many ads. Ads that are targeted may raise privacy issues, which is not good for advertisers.
Why Now? This move is a result of Lyft’s announcement that its ad revenues have exceeded expectations in recent months and increased significantly. It’s therefore understandable why the company continues to invest in this sector.
In particular, Lyft’s competitor, Uber launched in-app videos ads last month. The company’s Q2 earnings were announced last week. It stated that advertising revenues exceeded expectations with over $650 millions. It makes sense that Lyft would also test in-app video advertising, given the success Uber has enjoyed.
What did Lyft say? Zach Greenberger, Lyft’s Chief business officer, spoke to the Wall Street Journal.
- We’re going continue to invest in our multi-channel strategy, which we believe creates differentiation from our competitors because we can reach a user at every step and part of the transportation journey. This includes our massive bicycle network.
A deep dive Visit Lyft’s Advertising Help Centre to learn more about its advertising products.
The article Lyft now serving ads in its app first appeared on Search Engine Land.