Having expanded its in-app advertising offerings last October with the launch of Uber Journey Ads, ride-hailing and delivery service Uber Technologies has grown its advertiser base by 80% year over year.
In Q4 ended Dec. 31, the number of businesses running ads with Uber exceeded 315,000—up from just over 170,000 in the prior year’s quarter.
In an earnings call last week, Uber CEO Dara Khosrowshahi said the company’s advertising business has generated a $500 million annual revenue run rate.
“We are well on our way to delivering on our goal of $1 billion in advertising revenue in 2024,” said Khosrowshahi.
In 2019, Uber launched ads within its Uber Eats app.
“Only 25% of our merchants are active in the auctions that we have going on. So we think there's substantial upside to our advertising business.”
Last fall, the company formally launched an advertising division and unveiled Uber Journey Ads for brands to connect with its 122 million monthly active users throughout their app engagement.
Ads can be targeted based on where passengers have been and their destination.
Initial advertisers included NBCUniversal and Heineken.
According to Khosrowshahi, the click-through rate on Journey Ads is 3% and the cost-per-thousand is $45, “which is pretty amazing.”
In addition to offering car-top ads, Uber is running a pilot program involving tablets attached to seat backs that display trip information and advertising.
Uber competitor Lyft also sells ads but does not disclose their specific financial performance.