Afterpay launches ad platform, claims 20% sales lift through in app ads
"Millennial and Gen Z shoppers ... represent the vast majority of the spending power in the market today," Mark Teperson, Chief Strategy Officer at Afterpay, says.
Afterpay, the Australian payments company that was recently sold to Square for $29 billion, has announced Afterpay Ads. The platform will allow brands to target high intent Millennial and Gen Z shoppers with sponsored listings, products and promotions on a pay-for-performance model.
What you need to know:
- Afterpay, the Australian buy now, pay later company, has launched Afterpay Ads, a platform to target high intent Millennials and Gen Z shoppers.
- This, along with a recently announced analytics platform, Afterpay iQ, make the company a major player in the ecommerce space.
- Afterpay says it has seen 20 per cent sales lift on average when brands promote their products within the Afterpay app.
Australian buy now, pay later company Afterpay is becoming an advertising platform, launching Afterpay Ads to target Millennials and Gen Z across their ecosystem.
Brands will be able to place featured ads on the Afterpay app to promote products and offers on a pay-for-performance model.
The company, which was acquired earlier this month by global payments giant Square for $29 billion, today announced its annual results, with revenue up 78 per cent to $924 million but after-tax losses at $159 million.
The company, which is offered by nearly 100,000 retailers worldwide, says it has seen 20 per cent sales lift on average when brands promote their product within the Afterpay app. Around 55 per cent of the one million referrals each day from Afterpay come from shoppers using the app.
"Our merchant partners already rely on Afterpay as one their most valuable channels to acquire and reach the next generation of shoppers - Millennial and Gen Z shoppers who represent the vast majority of the spending power in the market today," Mark Teperson, Chief Strategy Officer at Afterpay, said in a statement.
The payments company recently launched an analytics platform, Afterpay iQ, to analyse demographics, shopping habits and real-time data.
Earlier this year, Afterpay appointed Mediabrands’ Initiative as its media agency after a competitive pitch against Publicis. The firm is set to increase its $3m annual spend as it battles in a highly competitive market against Affirm, Klarna, Paypal and Zip-owned Quadpay. Afterpay’s annual report suggests marketing and other expenses are already increasing – operating expenses were $298.6m, more than double the previous year.
