Sunday, March 3, 2024

Pizza Hut Heats Up Its Digital Media Technique To Drive Incremental Gross sales


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 need to new channels, together with CTV, to drive incremental attain and gross sales.

Pizza Hut spends most of its advert {dollars} on digital media today, CMO Lindsay Morgan informed 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, referred to 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 also be sponsoring a school basketball stream on Barstool.television, which incorporates customized emblem integrations and product placements.

Knowledge delivers

Though the Melts commercials are designed to drive consciousness for a brand new product, the principle goal of the marketing campaign is to drive incremental gross sales from digital and streaming advert exposures, Morgan mentioned.

Digital is a chance for a model that’s already saturated different airwaves to succeed in youthful and, hopefully, incremental audiences who may finally flip into repeat clients.

However manufacturers want dependable entry to first-party knowledge to find out whether or not a sale is incremental or not, Morgan mentioned.

Look-alike modeling is changing into more difficult for advertisers because of privateness legal guidelines, she mentioned, and so Pizza Hut has been leaning right into a first-party knowledge technique to focus on and measure its personal viewers, together with encouraging clients to make on-line orders.

Pizza Hut can also be spending extra to advertise its loyalty program, Morgan mentioned, 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.

In the present day, most of Pizza Hut’s gross sales come immediately from its app or web site, each of which generate a ton of first-party knowledge the corporate makes use of for marketing campaign planning and attribution, Morgan mentioned.

For instance, Pizza Hut can detect whether or not a selected buyer has positioned an order within the final 30 days, then market to that particular person accordingly. Pizza Hut sometimes sticks to its personal internet or app to reengage current clients and depends on TV or open internet 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 primarily based on engagement metrics, together with clicks, video completion price and website visits, whereas streaming and linear TV advertisements are measured primarily by attain and frequency counts.

However attribution can also 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.

On account of Pizza Hut’s newly diversified channel technique, the model has already seen an uptick in repeat clients for the reason that launch of its Melts marketing campaign two months in the past, Morgan mentioned.

CTV versus linear

Though Pizza Hut goes large 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 mentioned, “as a result of linear continues to be driving a tonnage of transactions for us.”

Morgan mentioned she isn’t anxious 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 actually has its challenges. Linear CPMs are usually dearer than streaming, and the channel additionally doesn’t provide as granular a stage of viewers focusing on, so Pizza Hut has to spend judiciously on linear, Morgan mentioned.

However premium dayparts on linear TV, significantly stay sports activities, nonetheless do the trick, and Pizza Hut intends to maintain on shopping for towards them.

Pizza Hut’s plan, Morgan mentioned, is to proceed investing in all video channels to construct a diversified viewers base with buy intent.

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