Uber's ad business reaches a net revenue annual run rate of $1 billion

Uber Ads anticipates growth in areas like programmatic advertising, measurement, and playable ads.

Uber announced that its advertising business reached a net revenue annual run rate of $1 billion, hitting the target it set two years ago right on schedule. Launched in 2022, Uber's ads division offers a variety of ad formats, including those displayed on the Uber and Uber Eats apps, within emails, on cartops, and on in-car tablets.

Uber Ads sees significant growth potential in areas like programmatic advertising, measurement, and playable ads. As ads become a high-margin growth area across various industries, including supermarkets, dating apps, and online marketplaces, Uber is leveraging its first-party data on millions of users. The company offers advertisers a diverse range of formats, from static shopping ads to video content.

Paul Wright, head of international at Uber Ads, told Business Insider that the company is exploring ways to help advertisers become more tactical about the context of a user's trip, such as whether they're heading to a restaurant, airport, or event.

"We know they're going to a Taylor Swift concert because we know their destination is Wembley Arena. That contextual element there is really powerful because I think a lot of location-based marketing up to now on digital has been a little bit of a guess," Wright said in an interview.

Wright highlighted several key areas where Uber Ads is focusing on its next growth opportunities. These include providing advertisers with tools to measure consumer attention and testing a new format called "Playable Ads," which allows users to play games from advertisers to unlock promotions.

Uber Ads is also seeking to boost its growth through third-party partnerships. Earlier this year, advertisers gained the ability to purchase Journey Ads within the Uber Rides app through platforms like The Trade Desk, Yahoo DSP, and Google's Display & Video 360. In June, Uber announced a partnership with T-Mobile to introduce its in-car JourneyTV to more than 50,000 vehicles across the U.S. this year.

Uber reported a 16% year-on-year increase in revenue, reaching $10.7 billion for the quarter ended June 30. Following the announcement, the company's shares rose 6% in pre-market trading.