radio delivers for quick service restaurants

A profile of the QSR consumer and how

radio can deliver

• Profiling the heavy QSR consumer (20% of American

adults 18+ who have visited a quick service restaurant

10+ times in the past month)

• The media habits of the heavy QSR consumer

• How QSR advertisers are using radio

• Targeting: audio programming that resonates with the

core QSR audience

Agenda

How radio targets QSR consumers

Source: Scarborough USA+ (Current 6 Months Only) 2015

The heavy QSR consumer: younger, more likely to have children, and be employed

Source: Scarborough USA+ (Current 6 Months Only) 2015 Release 2 Current (Feb 2015 - Oct 2015). Heavy QSR consumer defined as the 20% of American

adults 18+ who have used quick service restaurant 10 times or more in the past 30 days

Average

U.S. adult

Heavy QSR

consumer

Median age 47 40

Median yearly household income $53K $58K

Full-time employed 43% 54%

Married 52% 50%

1 or more children in home 37% 45%

% use social media 69% 78%

Source: Scarborough USA+ (Current 6 Months Only) 2015 Release 2 (Feb 2015 - Oct 2015), A18+. Social Media: used social networking in the last 30 days

QSR: Heavy QSR consumer defined as 20% of American adults 18+ who have used quick service restaurant 10 times or more in the past 30 days, heavy media = quintile 1

The heavy QSR profile: most similar to heavy radio and Internet users; very dissimilar to TV viewers

Heavy QSR

consumerHeavy radio

listenersHeavy

Internet usersHeavy TV

viewers

Median age 40 45 39 59

Annual income $58K $57K $64K $43K

Full-time employed 54% 70% 71% 34%

1 or more children in

home45% 42% 40% 24%

% using social media 78% 71% 89% 55%

Source: Scarborough USA+ (Current 6 Months Only) 2015 Release 2 (Feb 2015 - Oct 2015), A18+. QSR: Heavy QSR consumer defined as 20% of American adults 18+ who have used quick

service restaurant 10 times or more in the past 30 days. Online music listeners: listened to online music service (Last.fm, Pandora, Spotify, etc.) in the last 30 days; Video clip watchers:

watched video clips on the Internet in the last 30 days on any device; Podcast listeners: have watched, listened to, or downloaded a podcast in the last 30 days on any device

The heavy QSR consumer closely aligns withthe digital audience

Heavy QSR

consumer

Online music

listeners

Video clip

watchers

Podcast

listeners

Median age 40 35 39 37

Annual income $58K $63K $61K $66K

Full-time employed 54% 56% 52% 54%

1 or more children in

home45% 50% 44% 44%

% using social media 78% 92% 89% 93%

Radio reaches as many heavy QSR consumers as television and the Internet; digital platforms have lower reach

Source: Scarborough USA+ (current 6 months only) 2015 Release 2 Current (Feb 2015 - Oct 2015), heavy QSR consumer is 20% of American adults 18+ who

have used quick service restaurant 10 times or more in the past 30 days. Radio/TV: used in last 7 days. Internet/video clips/online music service/Internet

radio/podcasts: used in past 30 days

93% 93% 90%

54%

40%28%

14%

Radio TV Internet Video clips Online music

service

Internet radio Podcasts

% of heavy QSR consumers reached weekly

Reach

Internet

22%

Radio

24%

TV

54%

Heavy QSR consumers spend as much timewith radio as the Internet

Source: Scarborough USA+ (Current 6 Months Only) 2015 Release 2 Current (Feb 2015 - Oct 2015). Heavy QSR consumer defined as 20% of

American adults 18+ who have used quick service restaurant 10 times or more in the past 30 days

Share of total weekly hours spent with electronic media

How to read: Radio accounts for 24% of the total hours spent with electronic media each week.

Share of time spent

QSR weekly “primetime”: 6AM-7PM

Source: xAd Foot Traffic Trends, Q1 2016

Fast food

Fast casual

Coffee shops

Lunch consideration Dinner consideration

Source: QSR Visitation: xAd Foot Traffic Trends, Q1 2016; Radio: RADAR 128, March 2016, Monday-Friday, adult 18-49

Radio 6AM-7PM usage mirrors QSR primetime


Radio

Fast food

Fast casual

Coffee shops

RadioAdult 18-49 average quarter hour rating


TV

Fast food

Fast casual

Coffee shops

TVAdult 18-49 average audience

Source: QSR Visitation: xAd Foot Traffic Trends, Q1 2016; TV: Nielsen Total Audience Report Q2 2015, Monday-Friday, adult 18-49

Television usage misses QSR primetime

Radio has the highest share of media time spent during the day, when QSR foot traffic is highest

Source: The Nielsen Total Audience Report Q2 2015, Monday-Friday. TV Connected Devices = DVD, Game Console, Multimedia Device, VCR

Share of average audience Monday-Friday from 6A-7P, adults 18-49

36%

32%

13%

9%6% 5%

Radio TV PC Smartphone TV connected

device

Tablet

53%Radio

47%TV

93%TV

7%Radio

Source: Media time spent: The Nielsen Total Audience Report Q2 2015, Monday-Friday. Advertising dollars: Source: Kantar Media 2016

Share of adult 18-49

TV/radio time spent during QSR

primetime 6A-7P

Between TV and radio, radio deserves a larger share of QSR budgets

QSR share of 2015

advertising spend

Source: GfK MRI Fall 2015 Fast Food & Drive-In Restaurants: Heavy Users: 9+ Number of Times/Last 30 Days: Total Category; base A18+

The majority of radio formats target the heavy QSR consumer

98

98

99

104

104

105

106

106

107

107

107

109

109

110

113

113

115

117

122

123

124

134Urban contemporary

Urban

Gospel

Rhythmic

Contemporary hits

Urban adult contemporary

Sports

Hot adult contemporary

Country

Classic rock

Adult contemporary

Alternative

Classic hits

Tropical

Religion/Christian

Adult hits

Mexican

Rock

Spanish adult contemporary

Oldies

Hispanic

News/talk

How to read: Adults 18+ who are heavy QSR consumers are 34% more likely than the average adult to listen to urban contemporary stations.

How QSR advertisersare using radio

Fast food ads compared to commercial testing averages

Source: Nielsen Radio Ad Effectiveness Study, March 2016; Sequent Partners, A Meta Analysis, April 2016

56%

66%71% 72%

78%

46%50%

59% 61% 59%

Like Relevant Memorable Engaging Brand recall

2 radio ads each for Wendy's and for Burger King Radio average

Fast food radio ads connect with consumersNielsen Commercial Advertising Test

How to read: Fast food ads received a likability score of 56%, compared to the average likability score of 46% based on 98 ads tested.

Case study: radio drives ROI for QSR

Case study objective: measure the sales impact of three QSR

advertisers’ radio campaigns

What Nielsen did: conducted a sales lift study matching the Portable

People Meter panel listening data with consumer purchase behavior

from Nielsen Buyer Insights

Results: radio was a strong ROI driver with $3 of incremental sales for

every $1 spent on radio

EXPOSEDto the radio campaign

UNEXPOSEDto the radio campaign

Nielsen matched Portable People Meter panel data with

credit/debit purchase behavior

Nielsen measured the sales impact focusing on purchase behavior between two groups

Audience was broken into exposed and unexposed groups

Step 1

+6%

Unexposed Exposed

MATCHEDAUDIENCE

Step 2 Step 3

Source: Nielsen, P18+. Q3 2014

How Nielsen measures radio sales effect Methodology

Radio advertising increased QSR traffic and drove a sales lift


Results

1%increase in the

spend per

consumer

6%increase in the

total number

of buyers

Quick service restaurants generated $3 of incremental sales per $1 radio ad spend

Incremental sales

÷

Radio ad investment

=Return on

investment

$87M

÷$29M

=

$3

Results


Quick service restaurants: key findings

• Heavy QSR consumers have a similar profile to heavy radio listeners and digital users: younger, larger households, and employed

• Radio hourly usage mirrors QSR hourly foot traffic while TV usage misses QSR primetime

• Fast food radio ads connect with consumers: Nielsen commercial ad testing

reveals fast food radio ads resonate

• $3:$1 ROI per Nielsen- radio delivers sales impact for quick service restaurants:

radio drove a 6% surge of customers with 1% more spend per visit

• Radio deserves a larger share of QSR budgets: versus television, radio has 53% of

time spent during the heavy 6AM-7PM QSR primetime and only 7% of the radio

ad spend

All concepts property of Westwood One and may not be used without permission or agreed upon spending levels. Details pending partner and talent approval and subject to revision. © 2016-2017 Westwood One, Inc.

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radio delivers for quick service restaurants

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