Indonesia-based O2O player Go-Jek has acquired adtech startup Promogo, according to a report by e27. The amount remains undisclosed.
Promogo is an Indonesian company that specialises in in-vehicle advertising that comes with an online dashboard where clients can monitor the performance of the advertisement. The advertisements could be in the form of body wraps, rear windshield designs, and digital screens. Businesses can also increase their marketing reach by going for more interactive strategies like putting samples in the car.
Drivers can take advantage of this line of monetisation by signing up to earn extra income while driving for Go-Jek. The report noted that there are at least 50,000 Go-Jek driver-partners taking part in this programme.
This acquisition has helped Go-Jek develop two services: Go-Ice and Go-Vend, the former being one that was simply described as an “entertainment product” and the latter being an “on-the-go retail market” service letting customers buy goods or receive samples from a Go-Car vehicle, said Andrew Tanyono, CEO and founder, Promogo, in a statement.
Go-Jek is not the first ride-hailing company to monetise its fleets through advertising. In August, Go-Jek’s biggest rival in the region, Grab had launched GrabAds to turn its fleets into “mobile billboards” touting greater ad engagement. Aside from in-car branding, -sampling, and -retail, brands can use the GrabAds offerings to get feedback from its customers. Drivers can use this opportunity to earn extra income as well.
Takeaways:
- While the original report did not share more on what sort of entertainment services Go-Ice would provide, it is likely that passengers could probably watch films and movies on the digital screens provided in the vehicles. Having such services may incentivise passengers to keep using Go-Jek for trips, which in turns builds up customer loyalty for the company.
- While consumers make up a big market for ride-hailing businesses, the more profitable market is still the one targeting businesses. The ad buying market might be moving from traditional to online, but in-car advertising and those plastered on cars is still an industry not to be ignored as more people commute via ride-hailing trips.
Editor: Ben Jiang