Shopper Experience
07 February
Roku viewers can order DoorDash delivery from streaming ads
The partnership brings together subscriptions and shoppable content.
A Wendy's ad on Roku. (Courtesy photo)
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Roku and DoorDash are teaming up to connect TV and food delivery in one experience.
The news: Roku and DoorDash announced a new partnership that will allow people to order food delivery from a shoppable ad on their TV. Along with the capabilities being put in place by the tech platforms, Wendy’s is also adding shoppable content that will provide a discount on ordering at launch.
How does it work? For Roku account holders, there are three parts to the partnership:
DashPass: DoorDash is providing a complementary six-month DoorDash subscription. Called DashPass, this provides $0 delivery fees on orders from restaurants, grocery and retail stores on DoorDash’s marketplace.
Shoppable ads: Roku viewers will be able to click from their remote to order straight from ads on Roku via offers provided through DoorDash. For the first year, DoorDash will be the exclusive ad solution provider for restaurants on its marketplace to buy shoppable ads on Roku. With this, restaurant advertisers will also be able to work with DoorDash to attribute, target and measure TV streaming ads.
Wendy’s: The companies said Wendy’s also upped its digital capabilities as part of this partnership. The chain will make offers available through the shoppable ads. At launch, it will provide $5 off any Wendy’s purchase of $15 or more.
Key quote from Rob Edell, GM and head of consumer engagement at DoorDash: “While this offer unlocks DashPass benefits and perks for Roku users everywhere, it also provides our merchant partners with an opportunity to promote DoorDash offers through TV streaming. Consumers can conveniently and affordably get the best of their neighborhood delivered to their door, while brands can reach diners at the right time and drive instant conversion from the comfort of the living room.”
What it shows about commerce
The partnership is a sign that several different strategies being employed in digital media and commerce are converging:
Streaming and delivery: Watching TV and ordering food is a common behavior. In fact, Roku research indicates that one in three users order takeout or food delivery weekly. The partnership shows how there is room for the platforms that provide each of these distinct services to work together. It's a reminder not just to monitor how customers use your product, but what other products and services they use with it.
Shoppable ads and subscriptions: As digital commerce grows, there’s interest in reducing the steps between when a user thinks about making a purchase, and when they actually click “Buy.” This partnership does that in a couple of ways. With shoppable ads, Roku viewers can order directly from their TV, and even within the show they are watching. Switching devices may be a barrier, however small, to a sale. On DoorDash’s side, putting a subscription in place means users don’t have to think about logging in or consider delivery fees. This shows how introducing more interactive capabilities to streaming can open up new opportunities for commerce. Roku data shows that 36% of its users are interested in receiving interactive offers, such as a scannable QR code or text message. Such capabilities allow users to take action without switching screens.
Retail media and CTV: On the advertising side, the partnership is connecting DoorDash’s ad network with Roku’s content capabilities. DoorDash operates as a marketplace, while Roku serves ads during streaming content. Both have powerful customer data. DoorDash has purchase-level, or first-party, data. Roku has data on millions of customers, and the ability to reach them while they are doing the common activity of watching TV. The platforms also both have the ability to target users and measurement capabilities that can make this whole system even more powerful. While this partnership sets out one way the companies will work together immediately, it’s a safe bet that the partners will find other areas of mutual benefit to explore.
Further reading: It’s just the latest move by Roku to bring shoppable content to the platform. Last year, the streamer partnered with Walmart to pilot direct ordering straight from shoppable ads.
Is Amazon next? Break down the individual parts of this partnership: Subscription, delivery network, marketplace, streaming platform, advertising capabilities. Amazon owns each of these, and it even has a restaurant delivery partnership with Grubhub. Will it put these parts to work in a similar way? The better question may be, how long until it does so?
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Marketing
09 June
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
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