DoorDash is looking for a head of ad sales as it plans to build an advertising business that works with global brands on marketing and promotions, according to a job listing on LinkedIn.
The delivery app has been recruiting for the new position, while also talking with major advertisers about developing its ad products, according to people familiar with the plans. DoorDash’s LinkedIn job description says the head of ad sales will “own, develop and refine the process to successfully close negotiations for marketing and advertising agreements with DoorDash’s largest global partners.”
A DoorDash spokesperson did not return a request to comment. The company does have rudimentary marketing and promotional tools for the merchants on the service, like coupons and help with visibility. However, there are more ways for DoorDash to provide ad services to local businesses, major retailers and brands. DoorDash already has a delivery deal with Walmart, for instance. DoorDash could upgrade its automated online advertising tools and refine its physical promotions with product samples and packaging.
Advertising has become a lucrative revenue opportunity for delivery and e-commerce apps that sit between stores and consumers. The apps are tapped into consumer buying habits and brands are looking for all the marketing intelligence they can get to power sales.
One of DoorDash’s main rivals Instacart is building an ad sales team. Last month, Instacart hired Ryan Mayward, a former Amazon executive, as its VP of ad sales. Major retailers like Walmart, Target, CVS and Walgreens have also branched into advertising sales.
DoorDash is mostly known for restaurant deliveries, but it made a push into convenience stores and groceries last year. DoorDash has said it wants to grow its base of retailers. “We now support a meaningful number of stores in the grocery and convenience verticals, as well as more recent additions in verticals such as retail, pet supplies, and flowers,” the company said in its latest quarterly earnings report.
An ad business would be a way for DoorDash to help fulfill one of its stated goals of helping merchants increase sales. DoorDash works with merchants in multiple ways by allowing them to sell directly through its app or helping facilitate deliveries through their own websites.
DoorDash’s revenue grew 226% year-over-year in the fourth quarter to $970 million, but the company posted a net loss of $312 million.
DoorDash is hiring for other positions in its advertising and promotions team, too. This week, it posted a listing for a “merchandising manager.”
“We provide digital solutions to help advertisers reach DoorDash audiences,” the listing said. “This role will be directly responsible for managing the merchandising for ads [and] promotional content and tracking the consumer experience.”
