Just Eat’s parent firm Just Eat Takeaway.com has cut its marketing spend by a staggering 28% in the first half of 2023 in comparison with the same period last year, equating to a reduction of over £250 million.
Citing “efficiencies in brand marketing spend, as well as a reduction in performance marketing spend due to lower order volumes and costs-per-order spend optimisation”, the firm’s marketing budget decreased by more than £350m compared to June 2022.
The news comes amid a global reposition of its advertising portfolio, having switched brand ambassadors from Snoop Dogg to Katy Perry last year, and shortly after losing its headline sponsorship deal of popular reality TV show Love Island.
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“Since our IPO, our objective has been to build and extend large scale and sustainably profitable positions in our markets. With the majority of our Orders coming from Northern Europe and UK and Ireland, these two segments returning to growth in the second quarter of 2023 is a key milestone. Encouragingly, UK and Ireland is on its way to a similarly high profit margin as Northern Europe,” Just Eat Takeaway.com CEO, Jitse Groen said.
“The remainder of the business is also showing improving GTV growth and profitability trends, leading to the Company fast approaching its positive free cash flow target.”
Overall trends for the business across the half-year were down, with a 7% drop in overall revenue (£2.2 billion) with this figure rising to 13% in North America and 10% in Northern Europe. The trend was softer across the UK and Ireland, registering a 4% drop (£540 million).
