How QSRs are Seizing CTV Opportunities to Drive Growth
Author: Keith Norman, Head of Enterprise Sales, Premion.
With consumers embracing online and mobile ordering, drive-thru and curbside pick-up options, quick-serve restaurants (QSRs) have proven to be an essential consumer staple — and are outperforming the rest of the restaurant industry in sales and traffic. In fact, QSR drive-thru sales are up 47 percent this year, according to an October 2021 Black Box Report.
Forward-thinking QSRs are continuing to invest in technology innovations to enhance both the take-out and dine-in experience, including kitchen automation, on-demand delivery and touchless payment. To capture the attention of new and existing customers, QSRs are increasingly focused on local advertising and they’re seeking more effective and measurable ways to promote their brand, whether it’s promoting special menu options or new offerings.
With surging streaming TV growth, QSR advertisers are increasingly turning to CTV advertising to reach a highly engaged audience.
- This year, 82 percent of U.S. households are projected to be CTV households and the average time spent per day streaming on a connected device will be about 50 percent compared to the average time spent watching television, according to the latest eMarketer reports.
- BIA forecasts total QSR spending in CTV will more than double from $40.9 million in 2021 to $86.6 million by 2025.
- According to a 2021 July MRI-Simmons Cord Evolution study, 74% of heavy QSR customers watch ad-supported OTT, which equates to over 72 million people.
- With many QSRs leaning towards healthier menu options, the report also found that 79% of ad-supported OTT viewers are interested in healthier fast-food choices.
The powerful combination of data-rich digital targeting in a big screen TV experience makes CTV advertising invaluable for QSRs to tailor campaign messages to reach relevant viewers in a specific geography, by a certain daypart, or even by lifestyle habits. For instance, a QSR with a new late-night menu option can zero in on adults aged 18-54 in suburban or urban areas during a late-night daypart. For QSRs that are promoting healthier quick-eat options, they can target health-conscious CTV viewers down to the zip code — a highly receptive audience, with many preferring the leaner option when it comes to their menu choices.
Whether it’s driving brand awareness or performance marketing, QSR advertisers have the opportunity to connect CTV viewership to direct business results using CTV attribution capabilities. For instance, a QSR can measure how many viewers visited a specific restaurant after viewing an ad, which is incredibly powerful for connecting the dots between campaign spending and business outcomes. For a QSR campaign, Premion drove 4,220 location visits and 2,660 unique location visitors during the first month — proving the efficacy of ad spending and the power of OTT attribution.
QSRs need a trusted CTV advertising partner that can execute locally in reaching the right consumers at the household-level, track conversions, and reduce wasted impressions. Premion is a proven partner in driving measurable outcomes for many QSR brands. We’ve successfully executed a multitude of campaigns for hundreds of QSR brands— from large national and regional chains to small businesses.
Download “A Marketers Guide: The New Rules Ahead for Streaming TV Advertising” for more insights on driving CTV advertising success.
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