Gopuff takes ad platform in-house

Rapid-delivery grocery retailer Gopuff has introduced a new in-house ad platform that utilizes artificial intelligence and machine learning to deliver highly targeted ads to shoppers. Previously, Gopuff relied on third-party platforms to power its ad network and enable brands and agencies to run their campaigns, a company spokesperson told Supermarket News. By bringing the ad platform in-house, Gopuff has developed custom tools and capabilities tailored specifically for its partners and the Gopuff platform.

The new Gopuff Ads Platform includes tools that allow brands and agencies to build, manage, and measure their ad campaigns. It takes into account over 1,000 real-time variables, such as shopper behavior, previous purchases, time of day, and localized product popularity, to deliver relevant ads to customers in less than 50 milliseconds. Gopuff also utilizes 10 years of historical data to refine its targeting capabilities.

In beta tests, brands using the new platform have seen a 25% increase in click-through rates and a 24% increase in conversion rates. Additionally, advertisers have experienced an average of 30% lower cost-per-click through a more targeted approach.
“We believe everyone wins when we match the right advertiser to the right customer at the right time,” said Daniel Folkman, senior VP of business at Gopuff. “It’s what makes ad placements feel like content.”

Courtesy of Gopuff

The Gopuff Ads Platform offers features such as objective-based buying, which helps advertisers tailor their messaging to specific goals, like increasing household penetration, re-engaging lapsed buyers, or converting new customers. It also includes a bid-automation option that adjusts a brand’s bids for ad placement in real time based on conversion potential, increasing bids for highly relevant queries likely to convert to sales and decreasing bids for less impactful placements.

Brands can access and analyze campaign performance metrics across different audience segments, allowing them to determine whether new-to-brand consumers are more likely to convert on offers of single-item SKUs or multipacks.

Gopuff’s new ad platform comes amid a broader trend of retailers investing in more robust retail media networks (RMNs) to better target customers with relevant offers, both online and in-store. A recent Deloitte report predicted that 64% of retailers would implement an RMN in 2024, and noted that 92% of retailers with an RMN combine in-house and third-party capabilities.