Ibotta is a cashback and rewards app that helps users save money on their purchases. The app partners with various retailers, brands, and service providers to offer cashback and discounts on a wide range of products and services.
Ibotta works with various retailers in different areas and industries. When someone who uses Ibotta buys something, the retailer gives a little bit of the money they make from the sale to Ibotta as a commission. Ibotta gives some of the commission to its users.
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Ibotta makes money through several revenue streams:
- Affiliate commissions: When users make purchases through the Ibotta app, the company earns a commission from retailers and brands for driving sales to their products or services. This is the primary source of revenue for Ibotta.
- Advertising and sponsored content: Ibotta also generates revenue by displaying advertisements and sponsored content within the app. Brands and retailers pay Ibotta to promote their products and services to the app’s user base.
- Data monetization: With millions of users and billions of transactions, Ibotta collects a vast amount of data on consumer behavior and preferences. The company can monetize this data by providing insights and analytics to retailers and brands, helping them make informed decisions about their marketing strategies and product offerings.
- In-app purchases: Although the core features of Ibotta are free for users, the company may offer additional premium features or services that users can purchase within the app.
How much commission does Ibotta receive from its partners?
Ibotta gets paid a fee by its advertising partners for each eligible purchase made by a user. The fee can range from 3% to 10%. The specific amount of commission that is paid out is agreed upon in advance by both parties.
Does Ibotta receive any other forms of revenue besides affiliate commissions?
In addition to affiliate commissions, Ibotta also makes money through advertising services and selling aggregated and anonymized data to other businesses.
How does Ibotta sell aggregated and anonymized data to other businesses?
Ibotta sells aggregated and anonymized data to other businesses as part of its revenue model, which also includes affiliate commissions and advertising services.
The company does not sell personal user data; instead, it offers aggregated, anonymous data on its transactions.
Ibotta’s data is valuable to businesses for several reasons:
- Large dataset: Ibotta has a vast collection of deterministic purchase data in the US, making it a valuable resource for businesses looking to analyze consumer behavior.
- Use-cases for attribution: Brands can use the data from Ibotta to power attribution use-cases, which will help them assess the efficacy of their marketing campaigns and make data-driven decisions.
- Insights into consumer behavior: By analyzing the aggregated and anonymized data, businesses can gain insights into consumer preferences, shopping habits, and trends, which can be used to inform their marketing strategies and product development
- Privacy compliance: Since the data is anonymized and aggregated, businesses can access valuable consumer insights without violating privacy regulations or compromising user trust.