DoorDash increases OOH digital marketing spend to boost recruitment
As the summer season approaches, DoorDash is investing a larger chunk of its marketing budget into digital out-of-home advertising. The food delivery platform hopes to attract more people to become DoorDashers in low-engagement cities where there aren’t many people using DoorDash as a source of income.
Molly Elliot, associate manager and growth strategy driver at Doordash, said the company trialled digital OOH last fall to address the challenges of hiring new DoorDashers in San Francisco, Washington, DC, Atlanta, Detroit, Miami, Baltimore, Louisville and New Orleans to manage something .
As the company spends more on digital OOH, it’s leveraging a variety of display types to maintain a lasting brand presence, including large format OOH and location-based advertising that focuses on places where local consumers would likely be spending time, such as shopping malls. B. Billboards, urban panels, airports, bus stops, train stations, gyms, colleges and universities and gas stations.
“We wanted to use this channel (digital OOH) as an opportunity to get a baseline of this channel in smaller urban markets, so it wasn’t an experiment that we ran with extreme confidence,” Elliot said. “Rather, it was just an opportunity to learn.”
Elliot declined to share the exact numbers on DoorDash’s ad spend. According to Sensor Tower, the brand spent just over $180 million on advertising in 2022. According to Sensor Tower, DoorDash increased its spend by about 33% from January through May this year. Elliot said the brand typically devotes a quarter of its advertising budget just to experimenting with digital out-of-home advertising. However, she did not provide any information about her advertising budget.
“So when we look at the budget, it’s really about pulling those levers and seeing where we need to acquire dashers and what markets are of particular interest,” Elliot said.
With this particular campaign, DoorDash aims to reach out to people who have been laid off or are freelancing in the uncertain economy. The company places particular emphasis on targeting the allocated marketing budget and digital OOH marketing and hopes to capture the attention of potential dashers on the go. Since launching its digital OOH campaign this month, DoorDash has seen a 22% increase in people considering collaborating with DoorDash and a 6% increase in those intending to become Dashers, Elliot said .
DoorDash is just one brand incorporating outdoor advertising into its media mix this year. body armor, the NBA And liquid IV have also invested in digital OOH ads.
With people spending more time outdoors in summer than other times of the year, digital OOH advertising is in demand has the potential to gain visibility in lifestyle centers, entertainment venues, restaurants and on congested highways, according to previous Digiday reports. In particular, digital OOH enables marketers to change content in real time. As the digital advertising industry has grown rapidly, marketers can use OOH programmatic digital advertising to reach their target audiences in the physical world. It is estimated that the digital OOH market will reach $33 billion by 2026 research and markets. That number is up from just over $16 billion in 2019.
“Even though post-pandemic prices are rising in many markets, the effectiveness of OOH coupled with the dynamism and flexibility of digital makes DOOH a powerful option for top-of-the-funnel destinations and brands like DoorDash, the daily, local need visibility,” said Mat Zucker, senior partner and co-head of marketing and sales at Prophet, a growth strategy consulting firm.