Other companies that recently IPOed increased ad sales as a share of revenue ahead of going public as they ramped up marketing spend. Peloton, for example, spent $324 million on sales and marketing in fiscal 2019, up from $151.4 in 2018, accounting for 35.4% of revenue, up from 34.8% the year before.
DoorDash said in its IPO filing that it spends most of its marketing spend on attracting new consumers and that existing ones consistently increase their spending on its platform. People that started using DoorDash in 2016, for example, increased their annual spend 57% in 2019, the company said. The company said it would continue to spend to attract new merchants as well as consumers — with US consumers on DoorDash representing less than 6% of the population — as it acknowledged competitors and changing consumer preferences could threaten its growth.LoadingBy clicking ‘Sign up’, you agree to receive marketing emails from Business Insider as well as other partner offers and accept our
Wish I could read the article. But it’ll cost me $7.99/m
this is terrible news
Interesting read. Working efficiently with less