Why Grubhub Uses Out of Home

Tech firms have discovered out of home.  See Why Tech Companies are Using OOH, Outdoor Advertising Is the New Black or Why Tech Startups Favor Outdoor Advertising.

More evidence about the appeal of outdoor to tech startups comes from the March 27, 2017 Greymatter Podcast. Casey Winters is a growth advisor for the Greylock Partners venture capital firm.  He previously handled marketing for Grubhub the online and mobile food delivery service. Here’s what Winters said when asked about Grubhub’s marketing strategy:

“Advertising was a big piece as well.  We obviously did paid search on top of organic search but we also started to do things like outdoor advertising…For Grubhub 50% of its orders were placed between 6 and 8 pm, and what’s everyone doing before that?  They’re on their way home.  They’re either in their car or their on public transit.  So we figured out pretty early on that if you bought public transit ads you would get a pretty good response, but then it was built in public retargeting, because every time they went home they’d get reminded that they used this thing.  Every time someone placed their first online order we would survey people asking how they heard about us and we’d be able to build a cost per acquisition off of outdoor.  And it turned out the cost of acquisition was incredibly low and the lifetime value of those customers was higher than organic users.”

Insider’s take:  Make sure you remind your takeout clients that outdoor is a great way to reach people just before the peak takeout period.


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