Independent Operators

Delivery wars ramp up as services turn to OOH advertising

The delivery service wars — battles between DoorDash, UberEats and Grubhub — have been raging for several years as each brand jockeys for position as the leading food delivery provider. With more customers returning to indoor dining, delivery services have increased OOH spending to retain patrons and target new consumers.

Photo: iStock

October 4, 2021

The delivery service wars — battles between DoorDash, UberEats and Grubhub — have been raging for several years as each brand jockeys for position as the leading food delivery provider.

Through the COVID-19 pandemic, popularity in delivery services skyrocketed as people stayed home to avoid getting the virus. Consumers felt comfortable ordering from delivery apps and chose their favorites.
In recent months, however, as the virus has (somewhat) receded and indoor dining restrictions eased, more patrons have returned to eat at restaurants, forgoing the delivery option. As a result, the major combatants in the service wars have had to pivot, finding ways to retain customers and convince them delivery is still a safe, efficient option. They needed new ways to promote their business.

The solution:out-of-home (OOH) advertising.

Intersection, an experience-driven OOH media and technology company, said that in the New York City market, 2021 Q3 delivery service campaign revenue increased more than 260% since Q2.

Digital Signage Today talked to Chris Grosso, CEO of Intersection, an experience-driven OOH media and technology company, by email to learn how the pandemic has affected the delivery wars, how delivery companies are leverage OOH marketing through the pandemic, what markets should expect to see an increase in OOH ad investment and more.

Grosso

Q: In what ways has the pandemic affected OOH advertising in the delivery wars?
A: As vaccines rolled out and more people began spending more time outdoors for dining, shopping, and entertainment, delivery services wanted to keep the momentum they had during the lockdowns. The best place to catch audiences as they leave the couch is with OOH. In addition, a recent Harris Poll showed that 75% of Americans are burned out from staring at digital devices and 55% are noticing OOH ads more frequently.

Q: How have delivery services utilized OOH to reach more customers, generate business?
A: In cities like New York, the strategy seems to be saturation to stay top of mind. Our Q3 delivery service campaign revenue is up more than 260% since Q2. In addition, delivery services need to hyper-target neighborhoods and dayparts as they expand their delivery footprint. OOH products like LinkNYC allow advertisers to get their messages out to the right neighborhood at the right time.

Q: Do you feel some delivery services are using OOH better than others? Any specific examples?
A: Any brand with relevant and bold creative is going to win in OOH. One delivery service leveraged our digital assets in New York and Philadelphia to implement a dynamic program that changed creative and locations based on time of day to reach their target audiences as they traveled throughout the city. For instance: In the morning their creative would promote breakfast restaurants. During the evenings, their creative displayed dinner options available via the app. Other brands have used video for their campaigns, and I always find those very eye-catching when walking down the street.

Q: What are some of the key elements an OOH delivery service campaign should have to attract more customers?
A: Relevancy and context are important and OOH enables brands the ability to do both quite well. And of course, the ability to target — both neighborhood and daypart — and measure results are critically important. One leading online grocer leveraged Intersection's Digital Event Measurement product to track traffic driven to their website from their city-wide campaign on LinkNYC. The campaign generated an attractive cost per site visit and also allowed for in-flight campaign optimization.

Q: Besides delivery service, what other verticals do you see best utilizing OOH? What trends do you think will pick up in the future?
A: Digital brands looking for ways to expand their presence to the physical world are leveraging OOH campaigns effectively to have a presence in public space. Most of the leading tech players are also major participants in OOH. In addition, media and entertainment, education, finance and health care have continued relying on OOH both before and throughout the pandemic. We've also seen automotive and pharma pick up in recent months.