Lyft is introducing in-app advertising to enhance its media network, which was introduced last year, as mentioned in a recent blog post.
Lyft is aiming to attract more advertising investment by highlighting its rides as opportunities for brands to connect with engaged audiences. The ride-hailing company asserts that passengers typically check their phones around nine times during a ride, offering several chances to deliver sponsored messages.
“Lyft has a captive audience throughout their entire ride journey – waiting for their car, matching with their driver, and in ride – and brands can now reach riders in relevant and tailored ways across our suite of Lyft Media products,” said Zach Greenberger, Lyft’s chief business officer.
These campaigns can be personalized based on the destination of the rider. For example, someone heading to a movie theater might receive a message about a new film release, while another person going to a shopping mall might get a discount code for a nearby store. This approach could be appealing to companies looking to capture consumers in the moment and stimulate spontaneous purchases.
Initially, advertisers using Lyft’s in-app ads will receive “100% share of voice,” ensuring their campaigns receive full attention without competing brands. The ad-serving and programmatic components will be powered by Rokt, which employs machine learning to analyze transactional data and has also partnered with Uber for its advertising initiatives.
Lyft’s introduction of in-app ads builds upon the launch of Lyft Media last year, including digital rooftop screens and in-car tablets. The availability of these options has expanded alongside the rollout of in-app ads, and Lyft now serves ads at on-street bike-share stations in specific markets.
Lyft highlights that monetizing media assets benefits both brands and drivers. Drivers with ad-enabled tablets in their vehicles who complete at least 60 rides per week reportedly see their tips increase by over 10% on average compared to those without tablets.
These advertising efforts from Lyft coincide with its pursuit of greater revenue and market share against rival Uber. Uber has emphasized its advertising successes, aiming to generate over $1 billion in revenue from the segment by the next year. Lyft, a smaller company, has been streamlining operations and refocusing on core growth strategies under new CEO David Risher, who took charge earlier this year.