![]() #The meltdown doordash driverThis reveal is the premise of a viral TikTok by DoorDash driver In the clip, the TikTok user reveals some of the restaurants she’s discovered were actually being operated by bigger chains.įor example: In many parts of the country, you can order delivery from Pasqually’s Pizza & Wings. The result of this somewhat new phenomenon is that customers on delivery apps - such as Uber Eats or DoorDash - could place an order from what they believed was a unique, local restaurant when, in fact, that restaurant was basically a chain restaurant in disguise. For those who are unfamiliar, ghost kitchens are essentially delivery-only restaurants, with kitchens often based inside the kitchens of other restaurants. That’s because the strange, delivery-focused restaurants are often hiding in plain sight. “DoorDash certainly won’t be the last brand to lean into this advertising space as a platform.Even if you’ve never heard of a “ghost kitchen,” it’s possible you’ve ordered from one. “Advertisers can deliver smarter and more engaging content with dynamic ads and personalized experiences,” she said in an email. If DoorDash gets it right, the online food company may set the tone for others in the space with more retail media shifting to a “pay per sale” model, according to Brad Gagne, vp of device analytics, Wunderman Thompson Apps.Īshley Karim-Kincey, vp of media at Dagger agency, added that as first-party data becomes increasingly important, thanks to the decay of third-party cookies, retailers like DoorDash, with 20 million monthly active users, have an advantage in the retail media space. “Once someone is on DoorDash, you know they are hungry and ready to be a customer - they don’t need to be convinced.” Still, it’s more efficient than buying media on other platforms, he added. While a great strategy for DoorDash, it puts additional pressure on the restaurants to pay and compete, he said. It’s a fair concern, according to Andrew Solmssen, president, California for Wunderman Thompson (WPP). However, because of the nature of DoorDash’s offering, a second price auction bidding process, Hammers says there is concern of outbidding and marketplace saturation. Over time, Espinosa says the DoorDash team has “very large ambitions” with plans to improve the offering’s targeting capabilities. “This is the holy grail of e-commerce advertising if we can get this right,” Espinosa said.Įxecs wanted to prioritize user experience for customers, Espinosa said, which led the team to initially limit the amount of ad space taken up for DoorDash users. Advertising costs on DoorDash fluctuate depending on advertising goals, said Toby Espinosa, vp of ads at DoorDash. Seemingly, it’s a move to play catch up with the likes of Uber Eats, which rolled its own cost-per-click ad format with sponsored restaurant listings this time last year. The eight-year-old, California-based company is looking to stand out from the competition by way of merchants paying only for orders placed via their ad, instead of paying for ad clicks or impressions, per the company. DoorDash has also recently moved to offer banner placements and featured listings. DoorDash is beefing up its advertising offerings.Įarlier this month, the online food ordering company rolled out self-serve sponsored listings capabilities, in which restaurateurs can purchase search-page ad units to increase their visibility on the platform. ![]()
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