Deliveroo expands retail media network with SMG deal

Deliveroo is aiming to drive further growth of its advertising and media offering, Deliveroo Media, with consumer brands and non-endemic advertisers, as the battle for retail media budgets intensifies.

The move sees the delivery company sign a deal with SMG, the retail media specialist which operates the Boots, Morrisons, Co-op, Asda and Very Group networks, among others.

Deliveroo maintains the deal reflects the growing need from advertisers and agencies to be present in hyper-relevant moments when consumers are most receptive.

With over 7 million monthly active global users and around 186,000 restaurant, grocery and retail sites delivering around 300 million orders a year, Deliveroo has seen strong growth in its advertising business since its launch in 2022.

Ad revenue as a percentage of gross transaction volume is still relatively small, although it did increase to 1.4% in Q4 2024, and the firm maintains it is making good progress as it works towards a target of 2+% GTV in 2026.

Over the past year, Deliveroo claims to have improved the advertiser experience through the launch of new features and enhanced targeting, increased relevance using machine learning models and launched new formats for non-endemic brands.

In 2024, this led to a 15% increase in merchant partners placing ads and 90% of all partners who placed an ad, returning to place another within a month.

Since launch, Deliveroo has also worked with major brands, including Coca-Cola, Pepsi, and Heineken, as well as entertainment giants like ITV and Sky, who have leveraged Deliveroo’s media capabilities and audience to drive highly relevant and targeted campaigns.

The SMG partnership will play a key role in accelerating Deliveroo Media in the UK & Ireland.

As the quick commerce sector continues to expand – and Deliveroo has expanded its offer across restaurant, grocery and now retail – the firm claims this offers more opportunities for advertisers to influence purchase decisions based on real-life needs – from forgotten beers during a big game to an impromptu birthday party, to a quick grocery top-up, to DIY products, or a last-minute gift.

Deliveroo Media is also targeting non-endemic brands across a range of sectors, including media and entertainment, financial services, travel, and technology.

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.”