Lyft picks up its ad game with new video formats and measurement pacts

Lyft is making a major push to upgrade its advertising business, Lyft Media, by introducing new in-app ad formats as first reported by Axios and partnering with Integral Ad Science (IAS) for third-party ad quality verification.Verification vibes: The ride-hailing company tapped IAS as its first media quality measurement partner, providing advertisers with viewability, invalid traffic, and brand safety data for their campaigns. This move helps brands confirm their ads connect with genuine audiences in appropriate settings, addressing a common advertiser need for reliable campaign verification. Lisa Utzschneider, CEO of IAS, stated the partnership offers “greater transparency into their media buys through trusted and transparent metrics.”Ad arsenal expands: Alongside improved measurement, Lyft is broadening its promotional offerings. New ad formats, detailed by Axios, include “Sponsored Map Vehicles” that let brands customize car icons, “Sponsored Rides by Mode” for brand-subsidized trips, and a “Vertical Video” unit appearing for users who select Lyft’s “Wait and Save” option. These additions follow the initial launch of Lyft’s in-app ads in August 2023.Revenue ride: This upgraded ad strategy supports Lyft’s goal to reach a $100 million annualized ad revenue run rate by year’s end, a target also reported by Axios. The company brought on former Google executive Suzie Reider as EVP of Lyft Media late last year to lead this charge, pitting Lyft against competitors like Uber, which boasts an ad business reportedly hitting a $1.5 billion annual run rate.The bottom line: Lyft is making a concerted push to become a more formidable player in the advertising space, arming itself with better measurement tools and more diverse ad products to attract greater brand spending. The ad tech measurement arena saw other moves, with DoubleVerify launching DV Authentic AdVantage, an AI-driven solution for video ad performance in walled gardens, indicating a broader industry trend towards AI-improved ad quality and optimization.