- Zomato spent Rs 1214 crore in FY19 on advertising, a 15-fold rise from 2018 and posted 3 times increase in revenue in FY19.
To gain top-of-mind recall in the food delivery category, brands need to continuously ride the buzz, something that Zomato seems to have cracked over time. Ever since it acquired Uber Eats, ride-sharing giant Uber’s food delivery business, on January 21, 2020, it has been making headlines. Ironically, spending on ads and promotions by the company soared to Rs 1214 crore in FY19, a 15-fold rise in spending relative to the previous year. In addition, the company contended in its annual filing statement that all of Zomato’s marketing investments in FY19 helped them with customer acquisition and will bear rich dividends even during FY20.
At $206 million, Zomato posted a 3-fold increase in revenue in FY19, while its costs stood at $500 million. “We’ve had tremendous growth helped by aggressive marketing investment to acquire new users and be the first-to-market in many Indian cities. Being first-to-market gives us a distinct competitive advantage in the food supply business, in our experience.
Food delivery in India is building an entirely new market; 70 percent of our regular users in Kolhapur have never experienced food delivery (even over a phone call) in their lives, and Zomato was the first food delivery experience of their lives. All the marketing investments we made in FY19 will bear fruit in FY20 and beyond — when we know the users ‘ LTV (Lifetime Value) we’ve gained, “said the company statement.
Things have been getting more interesting in the delivery universe with Zomato’s feisty and savage advertising. In 2019, the brand launched its big TV campaign for the ‘On-Time or Free’ feature, based on the theme ‘Kabhi to late ho jaata’.
The ad shows users who opted for ‘On-Time or Free’ with a hope that Zomato will be late, only to be disappointed when it comes right on time. The ‘Thoda sa late ho jaata’ song on the background depicts the emotions of users frustrated to receive their order on time, every time. The company also roped in Vijay Deverakonda to represent the campaign in the Southern markets.
The brand has also been very good at exploiting social media campaigns and marketing moment.
One recent example is when the company took to Twitter’s microblogging site to address the much-discussed iPhone 11 Pro and its triple-camera system.
Zomato tweeted a picture of three cups of tea, strategically placed to mimic the newly launched phone’s three-camera design. The ad copy even took a jibe with the tag line “For less than 199” on the exorbitant price tag of the handset.
The online ad became a testimony to Zomato’s moment marketing skills, which the brand has come to strengthen over the years.
Some of the examples of Moment Marketing By Zomato are:-
an eclipse so beautiful it makes every morning shine ???? pic.twitter.com/Wb2IMZJXe9
— Zomato India (@ZomatoIN) December 26, 2019
During the Solar Eclipse.
home alone on christmas starter pack pic.twitter.com/KAnZXVDApc
— Zomato India (@ZomatoIN) December 25, 2019
The company uses Google Adwords to run a search ad campaign, too. This targets food-related keywords, online ordering, restaurant names and much more and also targets users whose purpose is to get some food delivered to them. The platform has delivered some savage advertising hits across television, digital and print over the last one year.
With Company acquiring Uber Eats now, it will be interesting to see how they plan their marketing campaigns and how much they act on it.