How Media Works: Advertising and the Purchase Funnel for Restaurant Advertising 1 A Yankelovich...

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

for Restaurant Advertisingfor Restaurant Advertising

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

for Restaurant Advertisingfor Restaurant Advertising

1

A Yankelovich Study for the Television Bureau of Advertising

Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives

Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand:

The role of television advertising in driving consumer actions throughout the purchase decision process

How television interacts with other media platforms, including new media such as the Internet

How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2

Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodologyMethodologyMethodology

Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them.

Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded.

Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them.

Each respondent then completed an ad survey for up to three of these categories.

The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc.

The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied.

3Source: TVB/Yankelovich “How Media Works,” April 2009

A Majority of Respondents are In the A Majority of Respondents are In the Market Market

A Majority of Respondents are In the A Majority of Respondents are In the Market Market

4

“Are you currently considering a purchase in the Restaurant Category?”(Asked of those who recalled seeing a TV ad for a restaurant* in the last 2 months)

Source: TVB/Yankelovich “How Media Works,” April 2009

* Includes family dining, fast food, fine dining establishments, or pizza delivery service.

Yes68.1%

No31.9%

Customer Profile: Restaurant Customer Profile: Restaurant AdvertisingAdvertising

Customer Profile: Restaurant Customer Profile: Restaurant AdvertisingAdvertising


Saw a Restaurant Ad that Made an Impression

Currently Considering a

Purchase in this Category

Made a Purchase

in this category in the

past 6 months

Made a Purchase

in this category

in the last 2 weeks

Male 46.3% 47.2% 46.0% 45.6%

Female 53.7% 52.8% 54.0% 54.4%

18-34 30.8% 28.7% 30.8% 32.2%

18-49 61.4% 61.2% 61.5% 63.3%

25-54 58.3% 61.2% 58.7% 60.9%

55+ 30.4% 29.3% 30.5% 28.4%

Urban 31.7% 28.7% 31.2% 31.1%

Suburban 43.7% 46.6% 44.4% 46.7%

Rural 24.5% 24.7% 24.4% 22.2%

HHI <$30K 26.2% 22.8% 25.7% 21.0%

HHI $30-$70K 44.5% 45.3% 45.4% 47.3%

HHI $70K+ 24.5% 27.9% 24.6% 26.9%

HHI $100K+ 11.3% 13.0% 11.6% 13.9%

Restaurant Ads on Television Were the Most Recalled Restaurant Ads on Television Were the Most Recalled of all Categories Included in the Study of all Categories Included in the Study

Restaurant Ads on Television Were the Most Recalled Restaurant Ads on Television Were the Most Recalled of all Categories Included in the Study of all Categories Included in the Study


Saw an ad that got your attention:

55%

46%

46%

46%

41%

40%

40%36%

36%

34%

34%

33%

28%

27%

25%

80%Any (NET)

Restaurants

Vehicles or auto dealers

Telecommunications or electronic products

Entertainment activities

Automobile or life insurance

Department stores or discount stores

Food, convenience, or grocery stores / supermarkets

Furniture, mattress, or carpeting / flooring stores

Travel or travel websites

Financial services

Healthcare products or services

Home improvement stores or services

Services

Schools / colleges / learning centers / vocational schools

Commercial websites

Over 75% of Those Who Recently Saw a Restaurant TV Over 75% of Those Who Recently Saw a Restaurant TV Ad Made a Related Purchase in the Past MonthAd Made a Related Purchase in the Past Month

Over 75% of Those Who Recently Saw a Restaurant TV Over 75% of Those Who Recently Saw a Restaurant TV Ad Made a Related Purchase in the Past MonthAd Made a Related Purchase in the Past Month


Last time made a restaurant purchase:

62%

14%

10%

4%

4%

1%

1%

1%

1%

3%

Within the last 2 weeks

3-4 weeks ago

1-2 months ago

3-4 months ago

5-6 months ago

7-11 months ago

1-2 years ago

3-5 years ago

6 or more years ago

I have never purchased in this category Restaurants

76% of those who recently saw a

restaurant ad made a purchase in

the past month

Eight in Ten of Those Who Saw Restaurant Ads Eight in Ten of Those Who Saw Restaurant Ads on TV Say the Advertisements Made a Positive on TV Say the Advertisements Made a Positive

ImpressionImpression

Eight in Ten of Those Who Saw Restaurant Ads Eight in Ten of Those Who Saw Restaurant Ads on TV Say the Advertisements Made a Positive on TV Say the Advertisements Made a Positive

ImpressionImpression


Type of impression made by restaurant TV ad:

32%

38%

26%

3%

1%

40%

40%

16%

2%

1%

Very positive

Somewhat positive

Neither positive nornegative

Somewhat negative

Very negativeTotalRestaurants

80% of those who saw restaurant ads rated

them positively, compared to 70%

across all 15 categories.

Restaurant Ads are Considered More Restaurant Ads are Considered More Informative, Attention-Getting and Relevant Informative, Attention-Getting and Relevant

Than Other AdsThan Other Ads

Restaurant Ads are Considered More Restaurant Ads are Considered More Informative, Attention-Getting and Relevant Informative, Attention-Getting and Relevant

Than Other AdsThan Other Ads


Ratings of Restaurant Television Ads:

Total Restaurants

How much did it get your attention?

19.6%

15.4%

18.9%

15.6%

12.2%

9.0%

3.6%

2.8%

1.3%

1.5%

23.0%

19.0%

23.0%

16.0%

10.0%

5.0%

3.0%

1.0%

1.0%

0.0%

10 -Completely

9

8

7

6

5

4

3

2

1 - Not at all

54% total

64% restaurants

42% total

55% restaurants

How relevant was it?

53% total

63% restaurants

How informative was it?

Those Who View Restaurant Ads are More Likely Those Who View Restaurant Ads are More Likely to Make or Consider a Purchase, or Talk to Others to Make or Consider a Purchase, or Talk to Others

About the AdAbout the Ad

Those Who View Restaurant Ads are More Likely Those Who View Restaurant Ads are More Likely to Make or Consider a Purchase, or Talk to Others to Make or Consider a Purchase, or Talk to Others

About the AdAbout the Ad


Actions Taken After Seeing TV Commercial for Restaurants

Total RestaurantsIndex to

Total

Any (Net) 49% 61% 124

Considered purchasing the product or service 17% 23% 135

Talked with others about the advertisement 16% 20% 125

Went online to learn more about the product or service advertised 14% 4%

29

Remembered you had seen the product or service advertised before 11% 7%

64

Purchased the product or service in a store 10% 22% 220

Visited a store or location to learn more about the product or service 8% 7%

88

Tried to find the advertisement on the Web 5% 2% 40

Looked in a newspaper or magazine to learn more about the product or service

4% 1% 25

Purchased the product or service online 3% 2% 67

Contacted the company in the advertisement 3% 1% 33

Sent someone an Email about the product or service 3% 1% 33

Sent someone a Web-site link about the product or service 2% 1% 50

Other action 3% 5% 167

Did nothing 51% 39% 76

Nearly all of those who saw restaurant ads Nearly all of those who saw restaurant ads say they have seen the advertisements more say they have seen the advertisements more

than oncethan once

Nearly all of those who saw restaurant ads Nearly all of those who saw restaurant ads say they have seen the advertisements more say they have seen the advertisements more

than oncethan once


Number of times saw restaurant TV commercial in past 2 months:

14%

33%

26%

14%

13%

15%

38%

26%

13%

8%

Just this one time

2-3 times

4-5 times

6-9 times

10 times or more

TotalRestaurants

Multiple Exposure to TV Ads Leads to Multiple Exposure to TV Ads Leads to a Much Higher Likelihood of Purchasea Much Higher Likelihood of PurchaseMultiple Exposure to TV Ads Leads to Multiple Exposure to TV Ads Leads to a Much Higher Likelihood of Purchasea Much Higher Likelihood of Purchase


Among those who recently saw a TV ad for Restaurants

# TV Ad Exposures

RestaurantsRecall 1-3 ad

exposuresRecall 4+ ad exposures

Any (Net) 61% 56% 68%

Considered purchasing the product or service 23% 22% 23%

Purchased the product or service in a store 22% 17% 27%

Talked with others about the advertisement 20% 19% 21%

Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 7% 7% 7%

Visited a store or location to learn more 7% 6% 7%

Went online to learn more about the product or service 4% 4% 4%

Purchased the product or service online 2% 2% 2%

Tried to find the advertisement on the Web 2% 1% 2%

Sent someone a Web-site link about the product or service 1% 1% 1%

Looked in a newspaper or magazine to learn more 1% 1% 1%

Sent someone an Email about the product or service 1% 1% -

Contacted the company in the advertisement 1% 0% 1%

Other action 5% 4% 6%

Did nothing 39% 44% 32%

Actions taken after seeing a Restaurant TV ad

Recall of Ads in Other Media is Low in the Recall of Ads in Other Media is Low in the Restaurant Category, Compared to 15-Category Restaurant Category, Compared to 15-Category

NormsNorms

Recall of Ads in Other Media is Low in the Recall of Ads in Other Media is Low in the Restaurant Category, Compared to 15-Category Restaurant Category, Compared to 15-Category

NormsNorms


Saw ad for same product or service in a media other than TV:

Total RestaurantsIndex to

Total

Any (Net) 46% 31% 67

On the Internet 20% 9% 45

In a newspaper 18% 10% 56

On the radio 12% 8% 67

In a magazine 11% 4% 36

In an Email offer 8% 6% 75

On a billboard or other outside sign 7% 7% 100

Other media 3% 4% 133

Did not see, hear, or read in any other media 35% 50% 143

Not sure 19% 20% 105

RestaurantsRestaurantsAdvertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel

RestaurantsRestaurantsAdvertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel


80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

76% 76% 73% 74%

62% 65%

24% 24% 27% 26%

38% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Restaurants No Media Influence-Restaurants

Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

Index = 95

Index = 101

Index = 109

Index = 121

Index =105

Index =123

RestaurantsRestaurants Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel

RestaurantsRestaurants Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel


Media cited by less than 3% of respondents were incorporated into the total for “other.”

44%51% 48% 49%

38% 42%

9%6% 7%

7%6%

5%6%

7%4%

4%

5%5%

4% 4%

4%4%

4%

12% 7%9% 10%

10%7%

24% 24% 27% 26%38% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest Consider Purchase Want to Purchase Visit Store/ Website Make Purchase

Television Internet Newspaper Radio Email Outdoor Other No Media Influence

ConclusionsConclusionsConclusionsConclusions

The purchase cycle for the restaurant category is relatively short, and many consumers are in-market at any given time.

Commercial awareness and recall are much higher in the restaurant category than the 15-category averages. Ads in this category are considered much more

relevant than average. Television ads in this category lead to actual

purchases or purchase consideration, and prompt viewers to discuss the ads with friends. Those exposed to a restaurant ad multiple

times are significantly more likely to make a purchase.


How Media Works: Advertising and the Purchase Funnel for Restaurant Advertising 1 A Yankelovich...

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