In our Midyear Local Media Spending Check-In webinar, fast food and quick-service restaurants (QSRs) ranked as the second-highest industry for radio digital spending. This makes QSRs a top priority for local media sellers. But what types of fast-food advertising are resonating with audiences right now?

Let’s review the data and what it means for campaigns.

Fast Food Local Ad Spending

According to BIA’s latest local spending data, the category of radio digital (any digital ad tactics except OTT/CTV sold by radio stations) will invest $98,189,156. That’s a 11.7% increase over 2024.

For CTV/OTT, the number is $99,142,917, representing a rise of 38%. This trend is indicative of many advertisers moving money from broadcast or cable TV to streaming.

In the entire “pie” of digital spending by quick-serve restaurants, the breakdown by tactic is:

chart

From this data, we can surmise that CTV/OTT, search, display and video are the most in-demand channels for the industry.

This is one piece of the strategy puzzle. Another is consumer preferences.

Consumers and Fast Food

Our recent Vertical Views episode on fast food revealed some interesting insights from Zappi. Here’s a quick review.

Demographic Changes

Those under 45 eat fast food the most. Household income is also a targeting segment with an update. Those in the $100,000-$149,000 bracket are responsible for increased spending, while those making less than $50,000 are eating it less.

Price Matters

With rising food costs, fast food isn’t so cheap anymore. Consumers say the price point “sweet spot” is $5-$8. As people need to stretch budgets further in terms of food costs, meals that are in the double-digits may not be accessible for some.

However, many of these restaurants are exploring more premium menu items, and 30% of those who enjoy fast food are excited about them. A smaller group, 23%, dismisses them as a gimmick.

Why People Love Fast Food

A meal at a quick-serve restaurant isn’t a top choice just because of cost. Diners listed having it as a treat or a guilty pleasure, as the number two and three reasons they eat it.

More Trends Impacting Fast Food Restaurant Local Advertising  

Along with consumers being more price-conscious and curious about menu changes, other things are affecting what will resonate with customers.

Here’s what we’re tracking:

  • Nostalgia marketing: Fast food places are going back to the 70s, 80s and 90s in campaigns. Restaurants are bringing back old menu items and pricing, in some examples. Many look back on those decades with memories of eating at their favorite spots, so it’s a great way to connect emotionally.
  • Loyalty program pushes: In a world where everyone wants a deal, restaurants should emphasize loyalty rewards. It’s an excellent way to get return business.
  • More health-conscious options: Salads and healthier sides have been emerging to cater to consumers who prefer them. In some campaigns, boosting these based on targeting criteria could be successful.

5 Campaign Ideas for QSRs

Now that we’ve completed the deep dive, here are five ideas to pitch to fast food restaurants.

  1. Target display (video and static) ads based on household demographics to reach the segment, fueling increased spending.
  2. Recommend streaming ads with nostalgia, premium menu or healthier choices themes.
  3. Suggest geofencing of competitors with specific discounts that are time-limited to persuade customers to try something new.
  4. Play up the treat and guilty pleasure angle on social media ads with some humor.
  5. Use retargeting options to push loyalty rewards.

Love vertical deep dives? We showcase them every month. Subscribe to Aspire so you don’t miss a thing!