Deliveroo enters new partnership to drive retail media proposition

Partnering with SMG, Deliveroo’s retail media arm dubbed “Deliveroo Media” will be accelerated and connect advertisers and brands with customers.

Deliveroo has seen strong growth in its advertising business since launching in 2022, with ad revenue making up 1.4% of gross transactional value (GTV) in the fourth quarter of 2024.

The company is working towards a target of ad revenue making up 2% of GTV in 2026.

The grocery and takeaway platform currently has over seven million monthly active global users and around 186,000 restaurant, grocery and retail sites which delivers around 300 million orders per year.

The advertiser experience through Deliveroo has been enhanced through launching new features, improving targeting, increasing relevance through machine learning models, and new formats for non-endemic brands. 

In 2024, this drove a 15% increase in merchant partners placing ads. Of all partners that placed an ad, 90% returned to place another within a month.

Since its 2022 launch, Deliveroo has worked with brands such as Coca-Cola, Pepsi, Heineken, ITV and Sky, which leveraged the platform’s media capabilities and audience to drive relevant and targeted campaigns.

SMG has helped build retail media networks for retailers like Boots, Co-op, Morrisons, Asda, The Very Group, and WHSmith North America.

Deliveroo chief business officer Carlo Mocci said: “I’m really proud of the advertising business we’ve built over the last three and a half years—and the strong growth we’ve seen. Our advertising offer is built on great fundamentals—every one of the 300 million orders we receive a year are for high-intent consumers, and each one of these orders has the potential to have an ad tied to them.

“We’ve already worked with thousands of merchant partners, and some of the world’s biggest brands—helping them to tap into specific consumer moments and drive strong returns. As we look to the future, we’ll offer enhanced user targeting, better campaign insights and new formats to advertisers.

“I’m excited to partner with SMG to drive further uptake in FMCG and non-endemic advertising, and seize the opportunities ahead of us as we continue to grow our advertising business.”

SMG chief executive Sam Knights added: “It’s becoming increasingly clear that different commerce media networks can deliver highly differentiated and powerful opportunities, and SMG is truly excited about the potential for Deliveroo Media to leverage its position as a recognised leading hyperlocal food delivery marketplace.”