Most individuals have already heard of Pizza Hut. However excessive consciousness isn’t sufficient to generate new and constant gross sales.
Which is why well-known manufacturers like Pizza Hut wish to new channels, together with CTV, to drive incremental attain and gross sales.
Pizza Hut spends most of its advert {dollars} on digital media as of late, CMO Lindsay Morgan advised AdExchanger. “And what we’re actually shopping for on digital media is incrementality.”
For instance, Pizza Hut spent 40% greater than it will on a typical media marketing campaign to advertise its new handheld product line, known as Pizza Hut Melts, throughout streaming channels.
The Melts marketing campaign kicked off in October on CTV and digital channels, together with YouTube, TikTok and Twitch, with some linear tossed in. Pizza Hut can be sponsoring a school basketball stream on Barstool.television, which incorporates customized brand integrations and product placements.
Information delivers
Though the Melts commercials are designed to drive consciousness for a brand new product, the primary goal of the marketing campaign is to drive incremental gross sales from digital and streaming advert exposures, Morgan stated.
Digital is a chance for a model that’s already saturated different airwaves to succeed in youthful and, hopefully, incremental audiences who might ultimately flip into repeat clients.
However manufacturers want dependable entry to first-party information to find out whether or not a sale is incremental or not, Morgan stated.
Look-alike modeling is changing into more difficult for advertisers on account of privateness legal guidelines, she stated, and so Pizza Hut has been leaning right into a first-party information technique to focus on and measure its personal viewers, together with encouraging clients to make on-line orders.
Pizza Hut can be spending extra to advertise its loyalty program, Morgan stated, which first launched in 2017 and now options offers and reductions, together with for Melts, to incentivize clients to create accounts and go the ecommerce route.
At the moment, most of Pizza Hut’s gross sales come immediately from its app or web site, each of which generate a ton of first-party information the corporate makes use of for marketing campaign planning and attribution, Morgan stated.
For instance, Pizza Hut can detect whether or not a specific buyer has positioned an order within the final 30 days, then market to that individual accordingly. Pizza Hut sometimes sticks to its personal net or app to reengage current clients and depends on TV or open net show to remain top-of-mind with much less frequent clients.
Though Pizza Hut’s messaging is usually constant throughout channels, its method to measurement and attribution varies relying on the channel.
It measures social and on-line advertisements based mostly on engagement metrics, together with clicks, video completion charge and website visits, whereas streaming and linear TV advertisements are measured primarily by attain and frequency counts.
However attribution can be a lot trickier when advertisements run on a TV display screen.
Pizza Hut makes use of advertising combine modeling and works with iSpot.television to measure attribution by channel breakout, together with figuring out whether or not a conversion is linked to a CTV advert publicity.
Because of Pizza Hut’s newly diversified channel technique, the model has already seen an uptick in repeat clients because the launch of its Melts marketing campaign two months in the past, Morgan stated.
CTV versus linear
Though Pizza Hut goes huge on CTV, it’s not dumping linear TV, which continues to be priceless for attain.
Quite than taking funds away from linear, Pizza Hut is sustaining its linear TV advert spend and easily spending extra on streaming.
“I don’t see us strolling away from linear TV,” Morgan stated, “as a result of linear continues to be driving a tonnage of transactions for us.”
Morgan stated she isn’t frightened that spending extra on streaming will cannibalize the results of its linear spending. Pizza Hut expects that its linear and CTV investments will work collectively to drive incremental gross sales.
Nonetheless, linear TV definitely has its challenges. Linear CPMs are usually dearer than streaming, and the channel additionally doesn’t provide as granular a degree of viewers focusing on, so Pizza Hut has to spend judiciously on linear, Morgan stated.
However premium dayparts on linear TV, notably reside sports activities, nonetheless do the trick, and Pizza Hut intends to maintain on shopping for towards them.
Pizza Hut’s plan, Morgan stated, is to proceed investing in all video channels to construct a diversified viewers base with buy intent.
