Just Eat

Shifting budgets and expanding consumer touchpoints

Despite posting a 30% increase in first-half year orders in July this year, Just Eat continues to buckle under pressure from rivals Deliveroo and Uber Eats. Just last week the company was ousted from the FTSE 100 following a volatile six-month period where analysts have cut their forecasts by 28%. A shake up of marketing is inevitable once a conclusion of the drawn-out AOR pitch process between McCann, Mother, Anomaly and Chime is reached.

An early obstacle in 2019 is February’s looming TfL junk food ad ban – which will impact budget distribution across everything from OOH creative and media buying to analytics and market research to measure the success of new campaigns. Just Eat allocates around 10% of its media spend to OOH media, so in London at least we think it will be exploring different options.

Digital investments: In August this year, online orders via the Just Eat app accounted for 54% of total orders placed, up 8% on the previous year, and despite recent troubles, previous strong results will likely spur further investment here. It’s likely to look at how AI tech can augment its app, with personalisation a key focus for the future. We would anticipate this investment to run into its digital marketing efforts, as it looks to build closer personal relationships with both loyal and first-time users of the platform. Personalisation of its social content, with new formats like AR, will therefore be a priority.

While the company has historically been very active in international expansion, CEO Peter Plumb has previously noted that the size of the food delivery category (£83bn in its operating markets) means it has an opportunity to drive increased purchase frequency with existing customers. Concepts that drive greater value from each customer in its chosen locations will catch the eye, rather than focusing on further international expansion in new markets.

Expanding consumer touchpoints: The company is looking for opportunities to reach consumers in new, relevant ways, and its X-Factor partnership shows the importance of its family audience particularly. The investment here (around £30m for three years of exposure on the TV show, app and annual live tour) highlights its commitment to family entertainment, and we would expect investment to remain high here even after this deal expires. While the reach of TV advertising is naturally crucial, it has also invested heavily in its online activation of the partnership – digital agencies with concepts on how to activate this deal effectively are likely to be relevant.

Influencer marketing: While we know the brand has been seeking a new influencer agency, social lead Rachel Kneen has previously expressed reservations about the value of influencer marketing due to a lack of knowledge of audience reach. The three main behavioural segments that the brand will be looking for in any future relationship are reach, audience data and engagement.

Media Spend Q1-3 2018: £8,142,483

Agencies: Karmarama, Dark Horses, M/SIX

Key decision-makers:

Marketing Director – UK Ben Carter - connect

Head of Brand Victoria Bloom - connect