First movers on Upside see 60% transaction lift after the market hits critical mass

When Upside launches 20% of fuel sites in an area, we unlock millions of advertising dollars that drive more transactions to retailers.

First movers on Upside see 60% transaction lift after the market hits critical mass

When Upside launches 20% of fuel sites in an area, we unlock millions of advertising dollars that drive more transactions to retailers.

First movers on Upside see 60% transaction lift after the market hits critical mass

When Upside launches 20% of fuel sites in an area, we unlock millions of advertising dollars that drive more transactions to retailers.

November 2023
Key results
$100 million

in Upside-funded advertising for retailers on the platform

60% increase

in Upside transactions within six months of reaching critical mass

The challenge

Why join early?

In a two-sided marketplace — with buyers and sellers — the marketplace becomes more valuable when there are more product buyers (users) and more sellers (retailers). Upside limits how many retailers can participate within different categories like fuel, convenience, and grocery on a first-come, first-serve basis; the platform is growing quickly to fill up those quotas and bring more users and retailers onto the platform every day. 

Existing retailers on the platform wanted to know: If I’m already on Upside, how is my business affected by new retailers in my area joining the platform?

Upside solution

Upside-funded advertising 

To answer the question, we analyzed retailers across all Upside purchasing categories in 50 different markets — large and small — across every region of the United States.

When Upside is just getting started in a new market, the number of transactions that it drives to participating retailers seems minimal. That’s because we need to hit a “critical mass” of fuel retailers (20% of sites in a market) before we can unlock millions of advertising dollars to grow our user base and drive them to participating retailers. In fact, each year Upside invests more than $100 million in advertising to deliver customers to retailers on the platform. That investment is well above the industry standard, and compared to some competitors who invest between $2 million and $10 million, it’s exponentially higher. 

We wait for critical mass before spending these advertising dollars because of the Marketplace Effect — more retailers makes the Upside product more interesting to users, which attracts more of both. If Upside deploys these ad dollars before there is enough inventory to serve an influx of users, users have a negative experience with the app, delete it, and are then more difficult to re-acquire. That means lost volume for retailers. 

When we hit that critical mass, Upside advertises across a variety of national channels to reach consumers wherever they are — in the car on the way to work, listening to their favorite podcast, scrolling on social media, or reading the news.  

resultS

There’s an advantage for early-adopters

When we reach a critical mass of retailers and unlock additional advertising dollars in a market, retailers already on Upside see a 60% increase in transactions through Upside within six months. That translates to more new customers and more profit captured without any additional effort.

Early adopters of Upside see the biggest benefit. Not only are they able to secure their location on the program, but they’re also able to capture all of the demand that an influx of new app users creates. This is especially impactful for retailers in categories like fuel, convenience, and grocery, which have limits to the number of locations that can participate on the platform.

As we continue to add new retailers to a market, those early-adopter retailers already on the program will continue to grow with Upside, especially as we continue to invest more in advertising. Retailers that wait to join miss out on Upside’s marketing dollars and all those impressions being served to new customers.

Retailer profile

Partner

Retailer case study

Industry

Fuel, Restaurant, & Grocery

Location

United States

Number of sites

Joined Upside

November 2023
Key results
$100 million

in Upside-funded advertising for retailers on the platform

60% increase

in Upside transactions within six months of reaching critical mass

The challenge

Why join early?

In a two-sided marketplace — with buyers and sellers — the marketplace becomes more valuable when there are more product buyers (users) and more sellers (retailers). Upside limits how many retailers can participate within different categories like fuel, convenience, and grocery on a first-come, first-serve basis; the platform is growing quickly to fill up those quotas and bring more users and retailers onto the platform every day. 

Existing retailers on the platform wanted to know: If I’m already on Upside, how is my business affected by new retailers in my area joining the platform?

Upside solution

Upside-funded advertising 

To answer the question, we analyzed retailers across all Upside purchasing categories in 50 different markets — large and small — across every region of the United States.

When Upside is just getting started in a new market, the number of transactions that it drives to participating retailers seems minimal. That’s because we need to hit a “critical mass” of fuel retailers (20% of sites in a market) before we can unlock millions of advertising dollars to grow our user base and drive them to participating retailers. In fact, each year Upside invests more than $100 million in advertising to deliver customers to retailers on the platform. That investment is well above the industry standard, and compared to some competitors who invest between $2 million and $10 million, it’s exponentially higher. 

We wait for critical mass before spending these advertising dollars because of the Marketplace Effect — more retailers makes the Upside product more interesting to users, which attracts more of both. If Upside deploys these ad dollars before there is enough inventory to serve an influx of users, users have a negative experience with the app, delete it, and are then more difficult to re-acquire. That means lost volume for retailers. 

When we hit that critical mass, Upside advertises across a variety of national channels to reach consumers wherever they are — in the car on the way to work, listening to their favorite podcast, scrolling on social media, or reading the news.  

resultS

There’s an advantage for early-adopters

When we reach a critical mass of retailers and unlock additional advertising dollars in a market, retailers already on Upside see a 60% increase in transactions through Upside within six months. That translates to more new customers and more profit captured without any additional effort.

Early adopters of Upside see the biggest benefit. Not only are they able to secure their location on the program, but they’re also able to capture all of the demand that an influx of new app users creates. This is especially impactful for retailers in categories like fuel, convenience, and grocery, which have limits to the number of locations that can participate on the platform.

As we continue to add new retailers to a market, those early-adopter retailers already on the program will continue to grow with Upside, especially as we continue to invest more in advertising. Retailers that wait to join miss out on Upside’s marketing dollars and all those impressions being served to new customers.

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