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Connected TV Advertising for Restaurants: Targeted Marketing That Delivers



Connected TV is taking the advertising world by the storm, allowing restaurants to target audiences based on demographics, interests, and location. CTV lets you deliver ads to potential customers who live within your delivery radius and are more likely to be interested in your menu.


Using CTV ads, restaurants can create engaging and interactive content that showcases online menus and services, and track key metrics such as ad impressions, click-through rates, and conversions.


Recent studies show that by the end of 2022, more than 205 million viewers in North America were consuming connected TV programs---and the numbers are set to rise in 2023. So what makes CVT advertising different from the traditional linear TV advertising? And more to the point, what benefits does it offer to restaurants?


Connected TV advertising refers to the placement of advertisements on internet-connected televisions, streaming devices, and other digital platforms that enable viewers to watch video content on demand.


Connected TV advertising allows restaurants to target specific audiences based on demographics, interests, and other factors, delivering ads to viewers who are likely to be interested in their menu or customer-related services in a relaxed and familiar environment. Restaurants using CTV ads can create engaging and interactive content that showcase menus and services, and track key metrics such as ad impressions, click-through rates, and conversions.


As more consumers shift their viewing habits from traditional TV to streaming video on demand services, Connected TV presents a huge opportunity for restaurants. No longer a marketing strategy of the future, with over half of U.S. households now having at least one connected TV device, CTV is a powerful addition to the restaurant marketing landscape in 2023.


But for CTV to work effectively, there’s a lot of information to understand and digest, so we’ve created a primer on what CTV means for the food industry, how it compares with traditional television advertising and digital marketing, and exactly what you need to know about Connected TV.



Why TV Advertising Still Works


There’s a reason why you’re still inundated with commercials every time you tune in to your favorite shows. Television advertising still works. If it didn’t, you wouldn’t see the world’s largest brands continue to dedicate milions to television ads. This might lead one to question whether the largest brands in the world advertise on TV because they’re large, or are they so large because they advertise on TV?


Despite the rise of social media advertising and the decline in traditional TV viewership, television continues to be a popular and effective medium for restaurants.


Here are some reasons why TV advertising still works:


Reach: Television reaches a broad audience, with millions of people watching TV shows and live events every day, all day.


Brand Awareness: The visual and auditory nature of TV advertising can leave a lasting impression on viewers, leading to increased brand recall and familiarity.


Credibility: TV advertising is often viewed as a more credible and trustworthy information source compared to digital advertising.


Evokes Emotion: TV advertising evokes strong emotions and creates deeper connections with viewers. Ads that tell compelling stories, include catchy jingles, and feature recognizable talent elicit strong emotions which can be highly effective in driving engagement and building brand loyalty.


Frequency: Reinforcing the message and increasing brand awareness, TV advertising can be highly effective when it is repeated frequently over a period of time.



Demand generation: Demand generation is the strategic process of creating authority and awareness for a brand, and creating a desire to purchase products and services from that brand. Great TV ads are a core component of demand generation, if not the most important aspect altogether.


The end goal of advertising in general is the creation of demand. If your restaurant is promoting a new direct ordering delivery service, for example, you might start by talking about lower delivery costs or faster delivery time. If you’ve widened your delivery radius, you might want to talk about that in your spot to entice viewers to visit your website. If you’ve expanded your menu to include vegan options, you’d want to let your audience know that too. These are ways tv ads can boost demand generation.


Once you’ve successfully captured your audience’s attention and made them consider how your restaurant will meet their needs, you’ve successfully generated demand for items or services your business has to offer that the competition doesn’t.


The goal of television advertising for restaurants is tol drive potential customers to visit your restaurant or engage with your online menu.


Television has the power to take your target audience by the hand and lead them towards your marketing funnel.



How Connected TV Ads Helps Restaurants


Connected TV (CTV) is taking the advertising world by the storm. In fact, recent studies show that by the end of 2022, more than 205 million viewers in North America were consuming connected TV programs and that number is set to rise in 2023. So what makes CVT advertising different from the traditional linear TV advertising? And more to the point, what benefits does it offer to restaurants?


Connected TV (CTV) refers to any type of TV that can stream digital video via the internet at a time when it’s convenient for the viewer, and on more devices. As a part of the new TV experience, CTV enables advertisers to reach more consumers across more screens than ever before.


Like traditional TV, video ads are shown to the viewer as they watch TV content. But there’s a major difference: wth CTV, you are able to show a highly targeted video ad to viewers in their familiar environment, such as their home or office, during peak hours when they’re hungry for what you’re cooking. This level of precision cannot be achieved by traditional TV ad network approaches.


Here are seven reasons you should consider adding CTV to your existing marketing repertoire.

  1. Affordability. Compared to the traditional TV ad budget, CTV ads cost 10 times less than linear TV ads per thousand impressions (CPM.) Combined with far more advanced targeting capabilities, this results in much more efficient media buys. And as viewership grows, more advertising surfaces are becoming available. This adds up to a more competitive marketplace for the savvy marketer.

  2. Targeting. CTV ads offer nearly the same audience targeting and customization options as social media ads. You can pick the demographics, interests, marital status, family income, and recent purchases. (Think Alexa.) The possibilities of reaching engaged and relevant viewers are endless.

  3. Reporting. While tracking the success of traditional TV ad campaigns is slow at best, CTV offers measurable results in real-time. This is a significant step ahead in media management. And like social media marketing, advertisers can tie the performance of an ad to offline behavior. Restaurants can see whether an ad for a brand new gluten-free menu, for example, resulted in orders and do cost analysis determining whether an ad is paying off.

  4. Convenience. To consume traditional TV ads, viewers have to be glued to their televisions watching regular programming. To watch CTV ads, potential customers can be watching video content on their gaming consoles, mobile devices, or laptop while working, playing, or shopping. This makes the ad feel instantly more familiar, personal, and approachable, resulting in a message that’s not only relatable, but more engaging.

  5. Brand recognition. Non-skippable CTV ads, when viewed in a familiar, casual environment by already interested viewers, can communicate to the desired audience in a language that speaks much more effectively than generic traditional TV ads. The result is higher brand awareness and a better ROI. This is especially true for restaurants that can instantly drive traffic to their online menu.

  6. Increased Sales: By promoting offerings to a highly engaged and targeted audience, restaurants can increase sales and drive revenue. Connected TV advertising can be particularly effective for promoting new menu items, specials, free delivery, and limited-time offers.

  7. Enhanced Customer Experience: Connected TV advertising can provide a more engaging and immersive experience for customers, allowing restaurants to showcase their offerings in a visually appealing and interactive way. This can help to create a strong emotional connection with customers, driving brand loyalty and repeat business.


How CTV Ads Boost Restaurant Delivery Sales

More specifically, CTV is an effective tool for boosting restaurant delivery revenue in the following ways.

  1. Target delivery areas: Restaurants can use CTV advertising to specifically target households in their delivery radius. By using precise geographic targeting, restaurants can ensure that their ads are seen by people who are more likely to order delivery and not wasted on those located outside the delivery area.

  2. Promote delivery deals: Restaurants can create CTV ads that highlight delivery deals or special offers, such as discounts on orders to a particular demographic segment, two-for-one happy hour menu items, alcoholic beverage delivery, or free delivery for first-time customers. These ads can help to incentivize viewers to take action in real time.

  3. Showcase menu items: Restaurants can use CTV ads to showcase new menu items, especially those that are popular for delivery. By displaying mouth watering images or videos of delicious-looking food, restaurants can entice viewers to order delivery directly from their website.

  4. Include call-to-action: CTV ads can include a call-to-action (CTA) that encourages viewers to order delivery. For example, the ad can display a QR code, phone number, or website where viewers can place an order.

  5. Retarget viewers with omni-channel marketing: Restaurants can use retargeting techniques to show CTV ads to viewers who have already interacted with their brand on their website or social media channels. By reminding these viewers about their delivery services, restaurants capitalize on omni-channel marketing more than ever before.



Stats to Consider

Connected TV (CTV) advertising has been growing rapidly in recent years and is becoming increasingly important for restaurants. Consider these eye-opening statistics.

  • Viewing of Ad-Supported CTV Apps is Up 55% Since 2020.

  • 83% of households are CTV enabled.

  • The average home uses 7.3 apps and nearly 30% of homes use 10 or more apps.

  • 86% of CTV viewers recall ads they have seen on CTV.

  • 45% of CTV ad viewers take action as a result of seeing an ad.

  • 213.7 million households will have at least one CTV deviceby the end of 2023, compared to 86.2 million households with traditional pay TV subscriptions.

  • TV viewers watch ads for 95% of their duration, compared to 85% for traditional TV ads.

  • 77% Of Viewers Who Primarily Watch CTV Leave Traditional TV due to cost.

  • 82% of Direct to Consumer Viewers Take action After Seeing a Connected TV ad

  • CTV grew by 200% from 2018 to 2023.



How CTV Stacks Up Against Traditional TV Advertising

Connected TV advertising offers several benefits over traditional TV advertising for restaurants by providing a more targeted, cost-effective, and engaging method for reaching a desired audience.


Here are some of the key advantages:


Targeting: Traditional TV advertising, though quite effective, is designed to reach a broader audience. Connected TV advertising allows restaurants to target specific demographics, interests, and geographic locations with precision. This means that ads can be shown only to viewers who are likely to be interested in the restaurant's offerings, resulting in higher engagement and conversion rates, and less wasted advertising dollars.


Cost-Effectiveness: Connected TV advertising is typically more cost-effective than traditional TV advertising, as it allows for more precise targeting and measurement of ad effectiveness.

Restaurants can optimize their ad spend and reach a highly targeted audience at a lower cost.


Lower CPMs: The cost per thousand impressions (CPM) for CTV advertising is generally lower than for traditional TV advertising. This is due in part to the more precise targeting options available with CTV, which can help advertisers to reach their desired audience more efficiently.


Better ROI: CTV advertising can provide a higher return on investment (ROI) than traditional TV advertising due to the ability to target specific audiences more precisely, measure ad effectiveness more accurately, and adjust campaigns in real-time.


More flexibility: CTV advertising allows for greater flexibility in terms of ad placement, targeting, and creative formats. Advertisers can target specific households or geographic regions with precision, and can use interactive and engaging ad formats to capture viewer attention.


Growing audience: CTV viewership is growing rapidly, with more and more households cutting the cord and moving away from traditional TV channels. This makes CTV advertising an increasingly important channel for reaching audiences who may not be reachable through traditional TV channels.


Interactivity: Connected TV advertising enables restaurants to create interactive and engaging ads that can incorporate videos, animations, and clickable links. This can help to drive engagement and create a more immersive experience for viewers.


Measurement: Connected TV advertising provides detailed metrics on ad performance, including impressions, click-through rates, and conversions. This allows restaurants to track the effectiveness of their campaigns and make data-driven decisions about future advertising investments.


Flexibility: Connected TV advertising offers greater flexibility in terms of ad placement and timing. Restaurants can schedule ads to run at specific times of day or during particular shows or events, ensuring that their messages reach the right viewers at the right time.



How CTV Advertising Compares to Digital Marketing


Overall, CTV advertising offers some unique advantages for businesses looking to reach highly engaged audiences with targeted messages. However, it should be viewed as part of a broader digital marketing strategy, rather than a replacement for other channels. It’s important to consider your specific goals, target audience, and budget when determining whether to invest in CTV advertising or other forms of digital marketing.


Here are some key advantages and limitations to CTV advertising over other forms of digital marketing.


Advantages

  • Targeting: CTV advertising allows for highly precise targeting of specific audiences based on demographics, interests, and other factors. This can be especially effective for reaching viewers who are highly engaged with video content and may be more receptive to ads.

  • Reach: CTV advertising has the potential to reach a larger audience, with millions of households using CTV devices to stream video content.

  • Format: CTV advertising allows for engaging and interactive ad formats, including pre-roll, mid-roll, and post-roll video ads. This can be highly effective in capturing viewers' attention and driving engagement.

  • Cost: CTV advertising can be more cost-effective than other forms of digital marketing, especially when compared to highly competitive channels such as social media advertising.

Limitations


CTV advertising is limited to video ads and does not offer the same flexibility as other digital marketing channels such as search engine optimization (SEO), email marketing, or display advertising.



Creating a Connected TV Marketing Strategy


Preparing for a connected TV ad campaign requires careful planning and execution. Here are some steps that restaurants can take to prepare for a successful campaign:

  1. Set Goals: Define the goals of your campaign, such as boosting brand awareness, driving sales, or promoting a specific menu item. This will help to guide the rest of the campaign strategy.

  2. Identify Target Audience: Determine the target audience for the campaign, based on factors such as age, location, interests, and purchase history. This will help to ensure that the campaign reaches the most relevant and interested viewers.

  3. Develop Creative Strategy: Create compelling and visually appealing content that showcases your restaurant's offerings and aligns with your campaign goals by incorporating interactive elements and calls-to-action.

  4. Choose Ad Formats: Select the ad formats that will be used in the campaign, such as pre-roll, mid-roll, or post-roll ads. Consider the length of the ads and the frequency of their placement.

  5. Choose Ad Platforms: Choose the platforms that will be used to run the campaign, such as Roku, Amazon Fire TV, or Apple TV. Consider the reach and targeting capabilities of each platform, as well as the cost.

  6. Set Budget: Determine the budget for the campaign, taking into account the cost of ad placement, creative development, and any other associated costs.

  7. Launch Campaign: Launch the campaign, monitor performance metrics, and make adjustments when necessary.



Best Practices for Advertising on CTV

  • Include a Visual Call-to-Action

  • Keep logo and URL persistent throughout the entire spot

  • Make use of voice-overs

  • Check Your Existing Video Assets.

CTV Video Ad Specs

  • Size Ratio | 16:9, 1920×1080

  • Length: 15 or 30 seconds

  • File Format: .mp4 or .mov

  • File Size: Max size 200MB

  • Frame Rate: Must be constant; 23.98, 25, or 29.97 FPS

  • Bit Rate: Greater or equal to 2500 KBPS

CTV Audio Specs

  • Overall Mix Level: 10db to -14db

  • Dialogue: -12db to -15db

  • Music: -18db to -22db

  • Sound Effects: -10db to -20db



Cost to Run a Connected TV Ad Campaign

While the cost to advertise on local connected TV can vary depending on several factors, including geographic location, size of market, length and frequency of the ad, and the targeting capabilities of a particular platform, CTV advertising can be more cost-effective than traditional TV advertising.


According to industry sources, the average CPM (Cost per thousand) for CTV advertising in the US ranges from $10 to $20, which is lower than the average CPM for traditional TV advertising, which ranges from $20 to $50.


One reason for the lower CPM for CTV advertising is the more precise targeting options available with CTV which can help advertisers to reach a desired audience more efficiently. With CTV, restaurants can target specific households or geographic regions with precision, allowing you to avoid wasted impressions and maximize your advertising dollars.


In contrast, traditional TV advertising often relies on broader audience demographics such as age and gender, which can result in wasted impressions and a higher CPM.


Media Buyer Beware Tip: Though it might sound impressive when a TV sales rep shows you a pie chart featuring their channel’s enormous viewership numbers from 4 to 8pm, the prime dinner ordering hours, how many of those people live within your restaurant’s delivery radius and how many fall outside of your delivery range. When dealing with TV sales people, it’s important to understand what you’re paying for and ask the right questions!


Additionally, the cost of producing traditional TV ads can be higher due to the need for high-quality production values and larger budgets for distribution.


Overall, while the cost of CTV advertising can vary widely depending on factors such as targeting and audience size, it is generally considered to be more cost-effective than traditional TV advertising channels.



Take Away

Combining all the benefits of TV advertising and digital marketing, accessing the power of television with the ability to track views and measure a campaign’s success in real time, Connected TV has the ability to increase brand awareness, drive sales, enhance the customer experience, and communicate targeted messages to customers without wasting advertising dollars.



By Eileen Strauss

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