https://www.ft.com/content/accf6e75-65b4-4be3-93df-7b3dfb3ef06f
The ubiquity of smart devices in almost every facet of our lives – smartphones in our pockets, ads on gasoline pumps while we fuel up, smart TVs in our hotel rooms, tablets in airport restaurants – has made it possible for businesses to target us with digital ads wherever and whenever. Realizing this, a number of consumer facing businesses have entered the ad sales business.
The latest to do so is Uber. The company announced that it will launch an in house advertising division and create targeted digital ads in its ride-hailing app (it already does so in the Eats app). The average Uber ride lasts 20 minutes and Uber executives believe that this time presents marketers with a captive opportunity to present its riders with digital ads. According to Mark Grether, who will lead the new division, “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.”
Companies like Meta and Google, who use the data they collect to target ads, have built lucrative businesses around digital advertising. Traditional retail businesses that wouldn’t necessarily fit the “tech” business model (eg, Dollar General, Home Depot and Walmart) have all tried to get in on the trend and launched their own ad-sales businesses to generate revenue. By utilizing the data generated by foot traffic in their stores and clicks on their websites, these retailers are able to generate data that is valuable to marketers. As more and more businesses realize the value in being able to harness the data they gather on the customers, targeted ad revenue will only grow. Privacy issues aside, there might come a time when the only ads a person comes across in a day are targeted and highly customized to him or her.
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