Chowdeck, Nigeria’s leading food delivery platform, is making moves to monetize its platform by exploring in-app advertising, following notable campaigns like Mavin Records’ promotion of Ayra Starr’s album The Year I Turned 21. The campaign marked an unconventional but impactful marketing approach, leveraging the platform’s young, tech-savvy audience.”Young people are Chowdeck’s core users, making it an attractive channel for advertisers looking to reach this demographic,” said a source familiar with the marketing strategies of Mavin Records.This trend isn’t limited to the entertainment industry. Fintech companies such as Yellow Card and Cenoa have also advertised on Chowdeck, citing its audience as a “premium target” for their products. Encouraged by this reception, Chowdeck is reportedly working on a dedicated ad product.
Early Ad Efforts and Revenue Potential
In 2023, Chowdeck charged ₦4 million for push notifications to its 200,000 users, as revealed in a rate card. Since then, the platform’s user base has grown, likely increasing the cost and value of such ad placements. Besides push notifications, Chowdeck offers SMS marketing, in-app banners, branded rider t-shirts, and social media promotions as part of its advertising toolkit.“Food delivery platforms capitalize on user intent—customers are already in the mindset to spend money, making them prime targets for advertisers,” said Bolaji Anifowose, a marketing expert.The strategy mirrors practices on e-commerce platforms like Jumia, which allows brands to sponsor products for additional exposure. Internationally, food delivery platforms like Grab and GoFood, embedded in Gojek’s super app in Indonesia, have demonstrated the potential of ad revenue streams, contributing significantly to their overall earnings.
Balancing Ads with User Experience
However, there’s a fine line between effective advertising and overwhelming users. In-app advertising in emerging markets like Nigeria holds immense potential, with projections estimating the sector to reach $144.2 million by 2028. But saturation or intrusive placements could deter users who simply want to order food.“The key lies in maintaining a balance, ensuring ads are not disruptive but instead enhance the user experience,” Anifowose explained. Discounts or promo codes accompanying advertisements could mitigate user concerns and even enhance customer loyalty.
Future Prospects
As Chowdeck scales its advertising efforts, its success could inspire other Nigerian food delivery platforms to follow suit. By tapping into this growing market, Chowdeck and its peers stand to diversify their revenue streams while providing value to both advertisers and end-users.For customers, the prospect of occasional discounts and exclusive offers might just make the idea of ads with their orders a little more palatable.
