Deliveroo has entered into a strategic partnership with connected commerce leader SMG, to drive further growth of its advertising and retail media offering.

The SMG collaboration will play a key role in accelerating Deliveroo Media in the UK and Ireland, bringing in SMG’s expertise from running media networks for retailers such as Boots, Co-op, Morrisons and Asda.

The rapid delivery firm has seen grown its advertising business since its launch in 2022. Ad revenue as a percentage of GTV (gross transaction value) increased to 1.4% in the fourth quarter of 2024, as the business works towards a target of 2+% GTV in 2026.

Over the last year, Deliveroo has improved the advertiser experience through the launch of new features and enhanced targeting. It has increased relevance using machine learning models, and launched new ad formats for brands.

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

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.”

He added: “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.”