Influence Peddlers

R&I research shows advertising media vary in power to shape dining choices

By Scott Hume, Managing Editor -- Restaurants & Institutions, 6/1/2003

Restaurants spent a total of $4.104 billion on Internet, magazine, newspaper (including supplements), outdoor, radio and television advertising in 2002, $326 million of which went to local media and $3.778 billion to national media, according to New York City-based researcher CMR/TNS Media Intelligence. But the most effective advertising medium continues to be available free of charge.

Restaurants and Institutions’ Tastes of America survey asked more than 1,400 consumers what most influences their decision to try a restaurant for the first time. A recommendation by or an invitation from a friend or relative was far and away the top response. Word of mouth rules.

“Ted Turner’s Ted’s Montana Grill restaurant was a legend before it opened,” says Atlanta-based media consultant Rob Gerds, who has worked with several chains and individual restaurants. “It was rumored and talked about for months. That’s what word of mouth can do.”

A friend’s positive review of a restaurant can be powerfully persuasive, he says, but it doesn’t mean that advertising through television, radio or other media is wasted. R&I research concurs: In aggregate, ad media rank fifth in importance as influences on restaurant decisions (behind recommendations, a desire to try something new, coupons and “I just came across it” serendipity). Yet, among media, persuasiveness does not necessarily correlate with expense. More people say their restaurant choice was influenced by newspaper advertising than by television, even though restaurants spent nearly $3.3 billion on television ads last year versus $146.3 million in newspapers. Radio, outdoor and Internet advertising followed newspaper and television in descending persuasive power.

WHO'S WATCHING?
“Budgets are a factor in media planning, but a variety of strategies comes into play,” says Gerds. “A major chain such as Burger King is going to have multiple levels to its plan, from national [media] for image to local-store level for prices or specials. An individual restaurant is going to concentrate on grass-roots marketing.”

Advertising media have varying levels of exposure among demographics, Gerds adds, and R&I’s research bears that out. While television rated equally strongly among men and women as an influencer on restaurant decisions, newspapers rated higher with men. Additionally, newspapers are least effective in reaching and persuading younger consumers (ages 18 to 37) and among households with annual incomes of less than $20,000. Newspapers’ impact was highest—significantly so—among respondents ages 57 to 65 and among households with the highest (more than $50 a week) spending on food away from home.

Whom does television reach best? Post-boomers (18 to 37), households earning $20,000 to $34,900 and households that average $10 to $24.99 in weekly restaurant expenditures.

Consumers in the wealthiest households (above $75,000) are most likely to be swayed by friends’ recommendations and much more likely than other age groups to make decisions based on newspaper reviews of restaurants. However, they are comparatively uninfluenced by newspaper advertising.
Not surprisingly, the wealthiest households—and those who spend more than $50 each week on dining out—also are most likely to make decisions based on Internet advertising.

It is not the youngest adults, though, who are most likely to come across a banner ad on an Internet site and make a restaurant choice as a result. Adults ages 38 to 42 are the prime audience for Internet influence. According to the Tastes of America survey, they are twice as likely to be swayed by online advertising as either people ages 18 to 37 or respondents ages 43 to 56.

TUNE IN, TUNE OUT
“When the economy is bad and people are going out less often, you do change media strategies,” says Gerds. “Often it means more price-related or promotional advertising. That works best with short bursts of high-intensity” communication. For most budgets, that means increased radio advertising.

R&I’s research finds radio to be significantly more effective in influencing men than women. While the medium does have an impact on adults younger than 38, an older audience (ages 57 to 63) most often cited radio advertising as influencing their dining choices. However, households with children ages 13 to 18 cite radio as an influence more often than households with younger or no children.

Outdoor billboard advertising shows regional variation in influence. Among respondents in the South, outdoor campaigns influenced the choice of a new restaurant more strongly than in any other section of the country, exceeding the impact of radio advertising. Respondents in the South also were most likely to cite newspaper and Internet ads as influences.

Among seniors (older than 65) no advertising medium came close to rivaling the persuasiveness of convenient parking in picking a new restaurant.