Jumia launches Advertising Arm in Kenya to drive Revenue.

Jumia, Kenya's leading e-commerce platform, has initiated its online platform to brands and corporate organizations for advertising as it tries to raise move revenues. The company's CEO, Sam Chappatte, made the disclosure during the launch of Jumia Advertising Services (JAS) in Nairobi.
The company’s Chief Executive Officer and Executive Vice President, Marketplace at Jumia Group, Massimiliano Spalazzi, said Jumia will be relying on four major pillars to scale its third-party logistics service.
The pillars include; unparalleled physical and network infrastructure; its people (over 6,500 delivery agents and over 3,000 warehouse operators; its proprietary technology tools powering the entire network; its scale, with over 20 million packages delivered across Africa in 2019; and its omnipresence – 25% of deliveries in 2019 was in rural areas, 50% in urban cities, and 25% in small cities.
Jumia Kenya CEO, Sam Chappatte said "20% of active internet users in Kenya are on Jumia each month. We know our customers well - what they shop, how much they spend, etc - and can use this to present relevant adverts to them. This can enable our customers to discover relevant products & services, and will become a powerful digital marketing channel for advertisers."
Chappatte further emphasized that their messages will reach highly targeted segments, right at the moment of purchase – e.g for DSTV the ads will be presented to people who are buying new TVs, or when selling beer, key messages can be shown to customers who are looking at a competitor's products. 
“We are launching Advertising in response to significant demand from agencies and brands. For effective digital marketing campaigns, you need data. This is what is special about our solution - and why leading brands that have been piloting with us over the last months are coming back for more”  he concluded.
With operations across 11 countries in Africa, Jumia plans to target users geographically and segment them based on their shopping behavior at the most granular level. 
The launch of Jumia Advertising Services is part of the company’s 2020 Strategy to increase the monetization of its platform which has not been doing really well. The company confirmed that they will also be opening up their extensive logistics network to third parties (eg for deliveries of packages, even those not sold on Jumia).
Jumia has really been struggling in Africa. The e-commerce unicorn shut down its operations in Tanzania and Cameroon in 2019 saying it needed to focus its resources on other markets as part of what it called an ongoing portfolio optimization effort.

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