Premion: How Quick Service Restaurants are Meeting Evolving Consumer Needs

| July 27, 2020

The Power of CTV/OTT Advertising for Reaching Local Take-out Customers

Editor’s Note: This post was written by Peter Jones, Head of Local Sales, and originally published on Premion.com.

In our current environment, quick-serve restaurants (QSRs) have proven to be an essential consumer staple. QSRs offer an affordable and convenient dining option that’s universally appealing to consumers. In fact, consumers spend upwards of $175 a month on takeout across 25 U.S cities, according to a recent Vitigene study.

Today, consumers are embracing online and mobile ordering, contact-less delivery, drive-thru, and curbside pick-up options. QSRs that have long established themselves in off-premises dining and brands, like McDonald’s and Wendy’s, see upward of 70 percent of their business via drive-thru. Even as we return to new normalcy, takeout and drive-thru orders will flourish as the food and dining trend will continue to emphasize local, familiar, and safe.

To meet the growing off-premises trend, QSRs are continuing to invest in technology innovations and some are experimenting with developing smaller footprints, different restaurant sizes, kiosk-driven models, and even developing dedicated third-party/takeout kitchens. In these dynamic times, QSRs are seeking more cost-effective ways to promote their brand, whether it’s waiving delivery fees or offering special family meal bundles.

Furthermore, delivery apps have shifted their models to better serve QSRs. For instance, DoorDash and Caviar eliminated commission fees on pick-up orders and reduced their delivery commissions and GrubHub created a fee deferral program.

With the surge in stay-at-home viewing, QSR advertisers have a prime opportunity to reach a highly engaged audience with CTV/ OTT advertising.

According to a recent MRI Simmons study, 82% of heavy QSR customers are OTT viewers, which equates to over 132 million people. With many QSRs leaning towards healthier menu options, the report also found that half of OTT viewers are interested in healthier fast food choices.

CTV/OTT provides QSR brands with an ideal blend of digital marketing capabilities with the quality viewing experience of television. Specifically, the addressability in CTV/OTT allows advertisers to zero in on specific audience segments on a home-by-home basis.

QSRs need a trusted CTV/OTT advertising partner that can execute locally in reaching the right consumers at the household-level, track conversion, and reduce wasted impressions.

Premion is a proven partner in driving measurable outcomes for many QSR brands. We run a multitude of QSR campaigns for local, regional, and national restaurants.

To dig deeper, click here to download the full report. 

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