Jumia Kenya launches advertising arm

E-commerce platform Jumia has embarked on target advertising to shore up revenues.

Jumia Kenya Chief Executive Officer Sam Chappate says performance marketing enhances value for money unlike brand marketing.

This comes in the wake of cost cuts by corporate advertisers amid rising competition and customer driven marketing strategies.

The firm eyes additional 1 million customer base within a year.

According to the Communications Authority, Kenyans performed 425.3 million mobile commerce transactions between July and September 2019.

This translated to 1.6 trillion shillings being spent to purchase goods and services online in the quarter under review.

In a move aimed at gaining traction, e commerce players are now tapping into target advertising.

Jumia Kenya CEO Sam Chappate says performance marketing is cost effective unlike brand marketing campaigns that fall short on specific customer needs.

The Jumia CEO further  allayed fears over possible violation of  consumer rights in use of personal data collected during online transactions for effective digital marketing campaigns access to accurate data will be based on among others customer transaction history, age, profession and needs.

The launch of Jumia Advertising services might just be a game changer for the e commerce platform that that is still operating locally amid shutdowns in Cameroon, Rwanda and Tanzania.