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Reading: Did Somebody Say ‘Spend Less?’: Menulog Parent Axes $250m From Marketing Budget
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B&T > Marketing > Did Somebody Say ‘Spend Less?’: Menulog Parent Axes $250m From Marketing Budget
Marketing

Did Somebody Say ‘Spend Less?’: Menulog Parent Axes $250m From Marketing Budget

Arvind Hickman
Published on: 29th February 2024 at 11:26 AM
Arvind Hickman
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3 Min Read
Rapper Latto and Cristina Aguilera star in the latest 'Did Somebody Say' ad for Menulog.
Rapper Latto and Cristina Aguilera star in the latest 'Did Somebody Say' ad for Menulog.
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Just Eat Takeaway.com shaved 20 per cent from its global marketing budget in a year Christina Aguilera and Latto took over ‘Did Somebody Say’ duties from Katy Perry. Its ad business grew by 28 per cent.

Menulog’s parent company, Just Eat Takeaway.com, cut its global marketing spend by 20 per cent to €588 million ($981 million) last year, citing more efficient brand marketing and a reduction in performance marketing spend.

The online food delivery business, famous for its ‘Did Somebody Say’ ads starring Snoop Dogg, Katy Perry and Cristina Aguilera (view below), had notable declines in global orders (down 9 per cent) and  revenues (down 7 per cent to €4.93 billion), but its advertising business increased by 28 per cent to €203 million.

Just Eat Takeaway.com operates in 20 markets under the brands Just Eat, Takeaway.com and Menulog. In Australia, Menulog works with the advertising agency Thinkerbell and the media agency UM.

Post-Pandemic hangover

The cuts to marketing budgets are not a huge surprise; the business revealed it had reduced its half-yearly budget by 28 per cent to €299m ($500m) during its H1 results announcement.

Food delivery apps, including UK rival Deliveroo, have previously cited lower order volumes in the wake of Covid lockdown rules easing in the past 18 months and consumers eating out more often. 

In the group’s Southern Europe, Australia and NZ region, online food orders tumbled by 16 per cent to 92 million in 2023, leading revenues to slide by 18 per cent to €438 million ($731 million).

It’s not all bad news. Just Eat Takeaway.com said cost-cutting, improved automation and logistics helped the group lift earnings (adjusted EBITDA) from €19 million ($32 million) in 2022 to €324 million ($541 million) in 2023.

The business said it had also “rapidly scaled” the volume of grocery and retail partners it offers consumers.

Just Eat Takeaway.com CEO Jitse Groen said “enhanced profitability” means the business returned to positive free cash flow territory in the second half of 2023, following a bumpy period. 

“I am particularly pleased with the strong momentum in the UK and Ireland, with adjusted EBITDA margin rapidly approaching a similarly high level as Northern Europe,” he added. 

“Overall, the business is in a strong position to capture further improvement to our topline performance, adjusted EBITDA and free cash flow in 2024.”

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TAGGED: Menulog, Thinkerbell
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Arvind Hickman
By Arvind Hickman
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Arvind writes about anything to do with media, advertising and stuff. He is the former media editor of Campaign in London and has worked across several trade titles closer to home. Earlier in his career, Arvind covered business, crime, politics and sport. When he isn’t grilling media types, Arvind is a keen photographer, cook, traveller, podcast tragic and sports fanatic (in particular Liverpool FC). During his heyday as an athlete, Arvind captained the Epping Heights PS Tunnel Ball team and was widely feared on the star jumping circuit.

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