Restaurant Marketing Predicted to Rise

While companies in many industries cut their marketing budgets in 2009, quick serve restaurant operators took the opposite approach. The Nielsen Company reports that this sector actually increased ad  spending by 2% in 2009. And for the most part, TV was the media format that benefited from the additional spending.

Here’s how spending broke out overall in the quick serve industry in 2009:

  • Spot TV $1.475 billion 36%
  • Network TV $934.8 million 23%
  • Cable TV $868.3  million 21%
  • Spanish Language network TV $203  million 5%
  • Spot radio $183.2  million 4%
  • Outdoor $149  million 4%
  • National magazine $84.2  million 2%
  • Syndicated TV $80  million 2%
  • Internet $58.9  million 1%
  • Network radio $18.1  million 0.4%

Spending in the quick serve segment, a total of $4.1 billion, dwarfed spending by ‘wait service’ restaurants last year. In 2009, that category spent $1.56 billion which was 4% below 2008 levels. Again, the TV media format scored well, bringing in over 25% of the total.

In 2010, operators looking 6 months out are optimistic. The index of restaurant performance now stands at 99 and analysts indicate this is the highest point achieved since November 2007. The Expectations Index has risen above 100 and demonstrates operator confidence in an improving market.  To lure consumers into eating out as the weather improves, restaurant owners should be increasing their marketing efforts.

[Source: QSR Retailers Increase Advertising 2%. Nielsen. April 2010. Web. 27 Apr. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.