DoorDash yesterday announced what it is calling "new self-serve ad solutions designed to give CPGs more flexibility and options to reach nearly every household in America." The goal, the company says, "is to help CPGs tap into DoorDash’s 25M+ monthly active customers across our broad network of 75,000+ convenience, grocery, and retail stores, at the point of sale to drive incremental purchases."
The platform, the company says, "empowers CPGs to directly activate, manage, and measure Sponsored Product ads on DoorDash. Sponsored Products are item-level placements throughout the Convenience and Grocery marketplace that connect DoorDash consumers with the brands they love. We’re focused on driving incremental revenue for our partners, and on average see that more than 50% of orders generated from ads on DoorDash come from new customers."
DoorDash says that it works with "all of the top 10 CPG manufacturers in the US, and in just one year, we’ve generated more than $3B in sales for merchants through ads and promotions. For consumers, ads on DoorDash are a trusted way to discover businesses and products that are relevant for every occasion. Ads are transparent in-app and will always be a seamlessly integrated shopping experience for consumers."
- KC's View:
At least in the grocery channel, there are a lot of plays being made for ad dollars, but has been pointed out on MNB by a number of readers, there are only so many dollars out there - funds put into this or any other advertising platform may end up being dollars that are not being spent on other promotional efforts that are sent directly to retailers.
There is so much of this going on right now that I worry about clutter, diluted impact, and, potentially, shoppers who get fed up with constantly being deluged with advertising. I'm not sure this is good for anyone.