Restaurant chain uses geo-fencing to target consumers with similar tastes for their dining style and its competitors to boost visits
Case study objective
To drive online ordering / free delivery for a sit-down dining chain with more than 20 locations using real-time mobile display advertising. Potential customers were targeted via mobile ads based on demographics such as current location, previous location and dining preferences / habits, including their affinity for this particular restaurant chain as well as competitors in this category. Based on the metrics, this restaurant marketing objective shifted in subsequent campaigns due to an unexpected increase in restaurant visits / foot traffic.
Marketing strategy
In April, the client launched a mobile display ad campaign with Valpak to promote new online ordering and free delivery at 5 of its locations. After 1-month, online ordering and free delivery increased from 1% to 14%. Additional reporting:
- 242,311 impressions
- 726 clicks
- 49,040 mobile devices reached
- 91 visits
From late May to mid-July, the client launched the second campaign with 10 locations (9 new). The objective was to drive in more restaurant visits. Results after 2 months:
- 892,859 impressions
- 110,624 mobile devices reached
- 2,469 clicks
- 917 visits
Campaign data showed 1 location received 345 of the total visits and sales for that location were up 22%. This demonstrated that despite brand awareness, not all locations are created equal; what call to action may be successful for one location may not work for another.
From August 5 to October 5, the client ran a third campaign that launched with 10 locations (2 new). Nine ran customer referral promotions, while the 10th focused on hiring efforts. Results after 2 months:
- 1,098,274 impressions
- 1,358 visits
- 179,438 mobile devices reached
- 53 job applicants (at new location)
- 4,052 clicks
Overall results (all 3 campaigns)
- 2.23+ million impressions
- 7,247 clicks
- 339,102 mobile devices reached
- 2,366 in-restaurant visits
Conclusion
Although the initial marketing objective was to drive online orders / free delivery, the residual effect was all locations saw an increase in store visits. Because of that unexpected success and positive customer experience, the restaurant chain doubled their ad spend after 30 days and at the end of September, signed on for additional campaigns at $4,000 per month for the remainder of the year.
The client has asked for a proposal for mobile display advertising with Valpak for the remainder of the year, including attracting new customers with a new promotion for a target audience of fans at a major sports venue using location-based digital advertising.
In addition, several factors played a key role in the mobile display advertising success highlighted in this case study, including multiple locations, business size and marketing budget / pricing. Whether fast food or sit-down dining, Valpak’s digital marketing experts can help determine the most effective mobile advertising strategy and optimization for your business based on your budget and goals.
