Uber is set to introduce video ads in its apps, according to an announcement made to The Wall Street Journal. These video ads will be displayed while users wait for their rides and during transit. They will also appear after placing orders in Uber Eats and in search results and other sections of Drizly. Additionally, tablets displaying ads will be placed inside some Uber vehicles.
The rollout of video ads will begin in the United States this week, with tablets featuring ads being gradually installed on a city-by-city basis. Uber plans to expand video ad availability to markets such as the UK, France, and Australia later in the year.
Uber has been featuring static ads in its Uber Eats app since 2019 and in its ride-hailing app since last year. In 2021, the company introduced new advertising tools in Drizly, the alcohol-ordering app it acquired. Mark Grether, Vice President and General Manager of Uber’s advertising division, stated that the company aims to generate over $1 billion in ad revenue by 2024.
The video ads within the apps will initially be muted by default, with audio playing on tablets placed inside Uber vehicles. The ads will have a maximum duration of 90 seconds. Considering that the average Uber ride lasts around 15 minutes, users typically spend two to three minutes viewing the app during trips. Grether explained that Uber can leverage user data, such as location and order history, to target video ads effectively. However, the company asserts that it will not share individuals’ data with advertisers.
Uber will offer users the ability to opt out of ad targeting based on demographic data and activity within its apps. However, opting out of ads entirely will not be possible, although users can close ads by locking their phones or switching to another app. Uber clarified to Engadget that the ads will not interfere with accessing safety features or communicating with drivers or Uber Eats couriers.
As Uber expands its advertising initiatives with the introduction of video ads, it aims to leverage user attention and data to deliver targeted advertisements. The company’s foray into video advertising signifies its commitment to generating substantial revenue from its ad platform in the coming years.
