Jumia Embraces Mirakl Ads to Transform Digital Advertising on African E-commerce Platforms
In a groundbreaking move, Jumia, the e-commerce leader in Africa, has partnered with Mirakl to adopt Mirakl Ads, a retail media solution. This strategic alliance is set to redefine digital advertising in African e-commerce, paving the way for high-margin retail media revenue and accelerating monetization across Jumia's African markets.
The partnership, announced with much fanfare, marks a significant milestone in the future of digital commerce across Africa. Facing challenges such as declining revenues and thin e-commerce margins due to costly logistics, Jumia is leveraging Mirakl Ads to shift from low-margin marketplace transactions to generating advertising revenue directly from its large user base in nine countries across Africa, including Nigeria, Kenya, Egypt, and Ghana.
The integration of Mirakl Ads, completed swiftly within two months, equips Jumia with sophisticated automation tools, AI-powered optimization, and streamlined campaign management. These capabilities allow sellers—from large brands to small vendors—to run highly effective sponsored product ads, boosting product visibility and seller performance while enhancing the overall customer experience with personalized recommendations.
The partnership is expected to unlock new revenue streams for Jumia while deepening engagement across its platform. By providing enterprise-grade advertising technology, the partnership enhances sellers' ability to promote products effectively on Jumia’s marketplace, thereby increasing their sales opportunities. This contributes to a more dynamic and competitive advertising environment within African e-commerce.
The adoption of Mirakl Ads places Jumia at the forefront of digital advertising innovation on the continent, unlocking significant growth opportunities within the expanding retail media sector, which is projected to reach $204 billion globally by 2027 with a 17.2% CAGR. Francis Dufay, CEO of Jumia, states that advertising is a key growth lever in their marketplace strategy, and this partnership with Mirakl allows them to accelerate this journey.
Adrien Nussenbaum, co-founder and co-CEO of Mirakl, echoes Dufay's sentiments, stating that the partnership enables sellers to grow faster and customers to benefit from a more relevant, engaging experience. Advertisers on Jumia, ranging from the biggest brands to the smallest marketplace sellers, can now boost their sales through advertising campaigns in Ghana, Uganda, Kenya, Nigeria, Senegal, Egypt, Algeria, Morocco, and Ivory Coast.
In summary, Jumia's collaboration with Mirakl is a pivotal development that redefines digital advertising in African e-commerce by harnessing AI-driven retail media solutions to boost advertising revenue, improve seller outcomes, and enhance customer targeting—marking a major evolution in the continent’s digital commerce ecosystem. The partnership aims to improve customer engagement and advance Jumia's long-term financial performance and profitability.
Jumia, upon integrating Mirakl Ads, aims to shift from low-margin marketplace transactions to generating advertising revenue directly from its large user base, leveraging technology to boost sales for sellers and enhance the customer experience. This partnership in technology is expected to unlock new revenue streams for Jumia and foster growth in the African finance sector, with the retail media sector projected to reach $204 billion globally by 2027.
