Restaurants to Explore More Location-​Powered Mobile Advertising

Consumers don’t always plan their trips to quick-​serve or fast-​casual restaurants. Spur-​of-​the-​moment decision making  multiculturalfastcasualabout where to grab a snack or a meal could leave restaurants operators at a disadvantage. Until now, they’ve had to rely on consumers to remember their promotions. But smartphones and location-​powered mobile advertising, of the type enabled by Verve for its clients, is changing all that.

Verve recently studied the results of mobile ad campaigns carried out by QSR and fast-​casual clients. The study looked at location-​based strategies that broke into 3 types:

  • Geo-​fence (users within a specific physical distance of the advertising restaurant) 27.59%
  • Geo-​aware (general physical market enhanced by consumer’s distance to nearest restaurant location) 55.17%
  • Audience (targeting consumers based on location) 17.24%

When considered together, all of these campaigns generated a click-​through rate of 1.21% which is significantly higher than campaigns that lacked location data and resulted in a 0.61% CTR.

Analysts also set out to measure other behaviors – especially increased foot traffic at advertiser locations and decreased foot traffic at competitor establishments.  For one advertiser, analysts found that geo-​fencing campaigns bumped up foot traffic by 3 times. The strategy also diverted visitors from competitor restaurants. Consumers were 18% less likely to visit these restaurants as a result of the campaign run by the restaurant where they did eat.

Using proprietary analytics, Verve analysts also report that these types of promotions do well with vacationers, sports enthusiasts, and pet lovers. However, a few caveats are important. These campaigns are apt to succeed at certain times of the day and with certain kinds of consumers, especially smartphone owners who enjoy engaging with apps. However, the study does point to the success of using technology creatively to gain a competitive edge.

To learn more about Fast Food Lovers, check out the Audience Interests & Intent Report available at the Research Store on ad​-ology​.com.

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.