Lyft ads: A new way to reach riders
By introducing in-app advertising to bolster its media network offering, Lyft is making waves in the advertising industry. The introduction of these in-app advertisements is meant to give companies a new way to connect with consumers while they’re in motion. Lyft believes that the nine times per trip that its passengers check their phones is a golden opportunity for brands to connect with their intended audiences.
In-app advertisements for Lyft are contextually targeted to deliver relevant messages to riders at the appropriate times during their app sessions. Ride events where these ads may appear include matching with a driver, viewing an estimated time of arrival, and monitoring the progress of a trip. Brands can increase the likelihood of engagement and conversions by targeting ads to riders based on their current location and intended destination using this method.
A passenger on their way to the movies could receive a message advertising a new film, while a customer on their way to the mall could receive a coupon for a store on their way. Brands can reach consumers at the precise moment they are most receptive to their messaging, increasing the likelihood of an impulsive purchase and the efficiency of the campaign as a whole.
Lyft’s in-app advertisements are useful for both advertisers and drivers. When compared to drivers without tablets, Lyft reports that those who complete at least 60 rides per week and have ad-enabled tablets in their vehicles see an increase in tips of more than 10%. In this way, both brands and drivers benefit from the monetization of media assets by reaching their respective audiences.
Lyft’s in-app advertisements provide “100% share of voice” at launch, guaranteeing maximum exposure and impact for sponsors. This eliminates the need for brands to compete with other Lyft app advertisers for user attention. By providing premium advertising space, Lyft helps companies get the attention of their target audience and make a lasting impression.
In order to streamline the ad-serving and programmatic aspects of its in-app advertisements, Lyft has teamed up with Rokt. In order to optimize ad delivery and guarantee precise targeting, Rokt analyzes massive amounts of transactional data using its proprietary machine learning technology. With Rokt’s help, Lyft can now provide more targeted advertisements to its customers.
In addition, Lyft and Kantar Brand Lift Insights have teamed up to offer advertisers comprehensive metrics by which to evaluate the success of their campaigns. By working together, brands can learn more about consumer perceptions of their products and services, including factors like brand awareness, brand association, and purchase intent.
The foundation laid last year by Lyft Media can now support in-app advertising. Originally, Lyft Media was only available on Lyft Halos, which are digital rooftop screens, and in-car tablets. By introducing in-app advertisements, Lyft has ensured that its platform is equipped with a full media infrastructure.
In addition to these developments, Lyft has begun delivering advertisements to four local bike-share stations. Brands can increase their reach and influence over potential customers by capitalizing on multiple touchpoints throughout the Lyft journey with this strategy.
Now more than ever, ride-hailing companies like Lyft are betting on advertising to bolster their bottom lines. Uber, Lyft’s primary rival, has been aggressively pursuing its advertising goals, with the hope of generating over $1 billion in revenue from this segment by next year.
By 2023, Uber anticipates reaching a revenue-run rate of more than $650 million, thanks in large part to the ad network it has already established with roughly 400,000 advertisers. Even though it’s a smaller company, Lyft is serious about competing for a piece of the advertising pie. With the introduction of in-app advertisements and its growing collection of media properties, Lyft is setting itself up to become a dominant force in the ride-hailing advertising market.
The introduction of in-app advertisements by Lyft represents a major shift in the ride-hailing industry’s advertising landscape. Lyft presents a one-of-a-kind chance for brands to interact with riders by providing them with contextual targeting, exclusive ad space, and useful metrics. Furthermore, brands and drivers alike benefit from media asset monetization.
It’s becoming increasingly obvious that ride-hailing services like Lyft and Uber are not just transportation platforms, but also potent advertising channels, as the company continues to grow its media network and compete with its main rival. Brands now have a new way to make genuine connections with consumers thanks to Lyft’s forward-thinking strategy and dedication to delivering highly engaged audiences. Future transit advertising is likely to be influenced by Lyft’s in-app advertisements as the ride-hailing industry develops.
See first source: Marketing Dive
Frequently Asked Questions
1. What is Lyft’s in-app advertising initiative?
Lyft’s in-app advertising initiative involves the integration of contextually targeted advertisements within the Lyft app to provide brands with a unique opportunity to connect with riders during their journeys.
2. How do Lyft’s in-app advertisements work?
These ads are strategically placed at specific points in the rider’s app session, such as when matching with a driver, viewing estimated arrival times, or tracking trip progress. Ads are tailored to the rider’s current location and intended destination for maximum relevance.
3. What benefits do advertisers gain from Lyft’s in-app advertisements?
Brands can deliver messages at the precise moment when riders are most receptive, potentially leading to higher engagement and conversion rates. This strategy allows for more impulsive purchases and efficient campaign outcomes.
4. How do drivers benefit from Lyft’s in-app advertisements?
Drivers who have ad-enabled tablets in their vehicles and complete a certain number of weekly rides report an increase in tips of over 10%. This enhances the monetization of media assets by effectively reaching targeted audiences.
5. How does Lyft ensure advertisers gain maximum exposure?
Lyft offers advertisers “100% share of voice” at launch, guaranteeing maximum visibility and impact for sponsors. This eliminates the competition for user attention among various Lyft app advertisers.
6. How does Lyft optimize ad delivery and targeting?
Lyft has partnered with Rokt, which uses proprietary machine learning technology to analyze extensive transactional data. This collaboration ensures precise ad targeting and delivery.
7. What metrics are available for advertisers to measure campaign success?
Lyft has collaborated with Kantar Brand Lift Insights to provide advertisers with comprehensive metrics. These metrics include consumer perceptions such as brand awareness, brand association, and purchase intent.
8. How has Lyft expanded its media infrastructure?
Lyft’s media infrastructure, initially available on Lyft Halos (digital rooftop screens) and in-car tablets, now includes in-app advertisements. This expansion enhances the platform’s ability to support diverse advertising formats.
9. How does Lyft’s advertising strategy compare to its competitors, especially Uber?
Lyft is aggressively pursuing a piece of the advertising market, similar to its main competitor Uber. Uber has already established a significant ad network with numerous advertisers. Lyft aims to compete by offering innovative in-app advertisements and a growing media network.
10. How does Lyft’s in-app advertising initiative impact the ride-hailing industry?
Lyft’s introduction of in-app advertisements is a significant shift in the ride-hailing industry’s advertising landscape. It transforms ride-hailing services into potent advertising channels, offering brands the opportunity to connect with engaged audiences in unique ways.
11. How is Lyft shaping the future of transit advertising?
Lyft’s forward-thinking approach and dedication to providing highly engaged audiences through its in-app advertisements are likely to influence the future of transit advertising. As the ride-hailing industry continues to evolve, Lyft’s strategy could set new standards for effective advertising in transit services.
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