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Case Study - display advertising proposal for QSR in USA

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Case Study - display advertising proposal for QSR in USA

  1. 1. Display Advertising for KFC Proposal Document Jaya Prakash Jain Internal Use1
  2. 2. Background and Objective Internal Use2  Background  Recent shifts in consumer behavior is forcing marketers to rethink on their advertising strategies to be competitive in the market.  These shifts are driving higher digital media usage leading to companies like KFC to make changes in their digital media strategy as well.  Objective  To help KFC leverage the untapped potential of display advertising using Media IQ expertize.
  3. 3. USA Digital Landscape eMarketer 2015 Internal Use3
  4. 4. The landscape for digital activities (USA) Internal Use4 Instagra m 24% of Pop. Pinteres t 15% of Pop. Twitter 16% of Pop. Digital Video Viewers 63% of Population Social Media Facebook 49% of Population Smartphone Users 57% of Population Tablet Users 45% of Population Smart TV Users 18% of Population Source: eMarketer 2015
  5. 5. 2015 Media Time Spend (USA) Internal Use5 Digital 5.46 TV 4.33 Radio 1.28 Print* 0.26 Others 0.14 Major Media Time Spend (hh:mm) Mobile 2.51Desktop 2.12 Others 0.43 Digital Media by Type (hh:mm) Americans spend 12 hours and 28 minutes per day with Media Of which 46% (5 hour 46 min) is spent on digital media Source: eMarketer 2015
  6. 6. 1.1% 15.5% 50.0% Traditional Digital Mobile USA Media Spend Growth Rate (2016 vs. 2015) Growth Rate (2015-2016) Digital Media $ Spend and Growth (USA) 17.5 21.7 26.4 31.1 5.3 5.7 5.9 6.320.3 23.3 26.3 29.7 17% 18% 16% 15% 25% 28% 31% 34% 2013 2014 2015 2016 USA Digital Ad Spending (US$bn) Search Classified Display Total Digital Ad Growth Internal Use6 Source: eMarketer 2015 43.1 50.7 57.6 67.1
  7. 7. QSR Industry Overview Internal Use7
  8. 8. QSR Industry at a glance (USA) Key Statistics Snapshot 2014 Revenue $ 225bn 2014 Advertising Spend $ 27bn Annual Growth 12-14 2.5% Annual Growth 14-16 4.2% Annual Growth 14-16 5.5% Annual Growth 12-14 3.4% 19.6 19.4 19.7 19.8 6.5 7.6 8.8 10.2 2013 2014 2015 2016 USA QSR Advertising Spend Breakup (US$bn) Offline Online Internal Use8 2.6 3.3 4.0 4.70.8 0.8 0.9 1.03.1 3.5 4.0 4.5 2013 2014 2015 2016 QSR Internet Ad Spend by Type (US$bn) - USA Display Classified Search Source: Online sourcesDummy data for illustration
  9. 9. Latest shifts driving QSR marketing Internal Use9 Recent years have seen transformative changes in how people interact with technology, how content evolve the new media paradigm, and how businesses develop through digital advertising and commerce. These are majorly driven by 4 shifts Platform • Higher engagement with digital media platforms • Growing acceptance of mobile as a medium • Increase in multi- platform users (56% of total digital media users by end of 2014) Content • Rapid change in the way content is consumed • Development of newer ways of content sharing - Whatsapp, Snapchat, Pinterest etc. Demographic • Millennials have become the driving force in terms of technology adoption - social media, mobile and video • Tracking their behavior gives important insights into the future Marketing • Marketing dollars following eyeballs to mobile platforms • At the same time, new ad and campaign measurement capabilities are reducing waste Source: comScore
  10. 10. How to create brand presence during such shifts  Display Advertising Internal Use10  What is Display Advertising?  One of many Internet marketing strategies, that uses the Internet as an advertising medium to show promotional messages.  Formats:  Important Metrics Banner Ads Pop-up Ads Text Ads Reach Engagemen t Increase in site visit Conversion ROI
  11. 11. Advantages of Display Advertising  Visual Dynamics: Have an impact at each level of marketing funnel, that may lead to  Capturing attention  Engaging audience  Influencing decision  Branding  Creates audience connection by reaching the right audience at the right time with right content.  Direct Response  Drives conversion  Generates leads Internal Use11 Awareness Education Evaluation Proposal Purchase Display advertising caters to all levels of marketing funnel
  12. 12. Display Advertising in QSR & KFC’s performance Internal Use12 Advertiser Total Display Ad Views (000) Share of Advertising Voice* Ad-Exposed Unique Visitors (000) Average Frequency McDonald's 295,884 33.6% 51,897 5.7 Quiznos.com 98,041 11.1% 16,390 6.0 KFC.com 84,974 9.6% 12,620 6.7 PapaJohns.com 82,298 9.3% 17,115 4.8 Subway 78,150 8.9% 15,478 5.0 Dunkin' Brands, Inc. 71,713 8.1% 23,240 3.1 PizzaHut.com 60,327 6.8% 15,366 3.9 SonicDriveIn.com 45,064 5.1% 7,070 6.4 Wendy’s International 43,344 4.9% 11,280 3.8 Burger King 21,493 2.4% 3,494 6.2 Source: comScore Ad Matrix 2008 Dummy data for illustration KFC • 9.6% of share of advertising voice • No. of display ads are way less than that of leader McDonald’s, however average frequency of ads per unique visitor is 6.7 on the higher side
  13. 13. What KFC should do? Internal Use13 Awareness Education Evaluation Proposal Purchase What KFC should do? • Increase no. of ads across different media • Target multi-platform users • Focus on mobile ads • Relevant content in the ad talking about KFC as a brand • In the content, help customers with benefits and comparison against competitor Create a buy from ad option which drives online users to KFC App or website Increase retargeting with clear understanding of customer demand
  14. 14. How <company name> can help? Internal Use14  Media IQ is an UK based analytics technology company that is unlocking insights to help drive business growth  Our proven model (mentioned below) can help KFC drive market traction meeting the aforesaid targets. Identify the segments to be targeted Create a test market Generate a cross- platform campaign Run the campaign in the test market Understand, analyze and improve test market campaign Implement across all markets Revisit the metrics and improve
  15. 15. Thank you Internal Use15

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