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SENSOR TOWER · ABRAHAM YOUSEF · OCTOBER 2023
Innovative Ad Strategies: How Top Food Delivery Apps Stay Competitive
Leading food delivery apps in the US are using video-based ads to reach consumers in a competitive market, with digital ad spending on desktop and mobile video ads in the first nine months of 2023 up 71% YoY. Top food delivery apps have employed unique approaches to differentiate themselves: UberEats prioritized on-time delivery, Grubhub partnered with Amazon Prime, and DoorDash targeted gamers on Twitch. These diverse strategies reflect the dynamic and evolving nature of the industry.
Key Takeaways:
Video-based ads remain the preferred ad format for leading food delivery apps in the U.S. As of the first nine months, these apps collectively increased their digital ad spending on desktop and mobile video ads by 71% compared to the previous year, and recorded a remarkable 176% surge in spending on video post ads on social platforms across the food delivery cohort
Grubhub has shifted its advertising focus from story post ads to video-based ads. In the first three quarters of 2023, 77% of its digital ad budget was allocated to these formats, marking a significant increase from the 43% allocated through the first nine months of 2022
Grubhub's partnership with Amazon, offering a complimentary Grubhub+ membership to Amazon Prime users, has led to an increase in active users during Prime Days. Grubhub experienced a 9% surge in WAUs during the July Prime Day and a 5% increase during the October Prime Day
DoorDash has strategically shifted its focus towards the gaming community, recognizing that gamers place orders 70% more frequently than regular users. As part of this shift, they have significantly increased their investment in video ads on Twitch, with an impressive 255% YoY growth in ad spending in 3Q23
For more information, request the full report from reports@sensortower.com.
