DoorDash Inks a Deal With Roku
By: Krystal Etienne · February 13, 2023 · Reading Time: 3 minutes
Streaming & Snacking
In today’s technology-infused world, there are multiple ways to have food delivered to your front door.
First, there’s the good old fashioned phone call. If that doesn’t work, a computer is always an option. Phone apps have made ordering incredibly easy, and smart speaker devices like Amazon’s (AMZN) Alexa can also help us calm our cravings.
If that wasn’t enough, now there’s a new way to get your favorite soup and side salad couriered directly to your sofa. Using interactive ads broadcast directly to customers’ TV screens, Roku (ROKU) and DoorDash (DASH) are teaming up to make the process even easier.
Roku’s US users will now see interactive ads promoting deals from DoorDash restaurants and grocers. Customers can enter their phone numbers into these “shoppable” placements via remote to receive timely and relevant promotions. Eligible Roku members will also get six months of free membership to DashPass, DoorDash’s subscription service.
Wendy’s (WEN) is one of the first food companies buying ads on Roku through the DoorDash partnership. Now, if users are in the mood for one of Big Red’s signature shakes, they will be able to get a $5 discount on orders of $15 or more purchased through Roku’s platform.
Streamers like Roku, Netflix (NFLX), Disney+ (DIS), and others are seeking novel ways to engage with their audience. In a crowded streaming space, interactive ads might help a company like Roku standout. It will also help both Roku and DoorDash collect valuable information and data on active users.
According to Roku, roughly 1 in 3 users on its platform order takeout or food delivery every week. Moreover, 36% of Roku users said they are interested in receiving interactive advertising offers. This is why the partnership makes sense from the streamer’s perspective.
At the end of the day, it’s important to keep in mind that, while Roku sells hardware, at its core it’s an advertising company. In 2021, over 80% of Roku’s net revenue came from its platform, which includes advertisements.
For users who are privacy-focused, there is a way to prevent personalized ads on your Roku profile. Simply go to Settings, Privacy, Advertising, then check “Limit ad tracking.” Many users don’t mind the ads, however. If that’s the case for you, keep an eye out for more food with your flicks in the near future.
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