Ad-supported streaming services continue to be the fastest growing streaming category, with a quarter of US internet users watching a mix of Advertising-based Video on Demand (AVOD) and Subscription Video on Demand (SVOD) services for TV and movie entertainment. That’s a 15% increase from Q1 2020, according to Ampere Analysis.
AVOD, already outpacing SVOD by 2X and gaining share from Linear TV, will continue to soar in 2022. And while advertisers across categories have invested in AVOD strategies in 2021, there are none more varied than the restaurant category.
EDO data, detailed in our 2021 TV Advertising Insights Report, highlights how restaurants — especially fast casual and QSRs — invested heavily in advertising on AVOD platforms in Q4 2021. In fact, EDO identified at least six restaurant advertisers that comprised at least 5% of airings per platform.
Read on for deeper insights into how restaurant advertisers are appearing on AVOD platforms during the final months of 2021.
The largest restaurant advertisers on AVOD
Pizza, fries, and breadsticks, oh my! EDO captured several fast food and casual dining brands comprising a hefty amount of airings on AVOD from October to December 2021.
For example, Wendy’s comprised 16% of all restaurant category airings on discovery+. Taco Bell similarly comprised 16% of restaurant ads on Hulu, the most of any brand in this category.
Per AVOD platform, here are the restaurant brands with the highest percentage of airings during Q4 2021:
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discovery+ ↔ Wendy’s (16%)
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HBO Max ↔ Papa John’s (16%)
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Hulu ↔ Taco Bell (16%)
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Paramount+ ↔ McDonald’s (31%)
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Peacock ↔ Olive Garden (20%)
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Pluto TV ↔ Little Caesars (51%)
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PrendeTV ↔ McDonald’s (63%)
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Tubi ↔ Olive Garden and McDonald’s (TIED – 20%)
McDonald’s is lovin’ AVOD
McDonald’s has a wide reach across AVOD platforms, and also invested in the Hispanic audience taking 63% category ad share on Prende TV, the streaming TV service that offers free premium TV and movies for Spanish- speaking audiences.
Outside of PrendeTV, McDonald’s has also invested in advertising on the more crowded Hulu platform (9%), similar to restaurant peers such as Taco Bell (16%) and Burger King (6%). The fast food brand also comprised 31% of restaurant airings on Paramount+ in 2021, and has no signs of slowing down on AVOD any time soon.
Netflix who? AVOD is a win-win for advertisers and consumers
As media companies and streaming platforms look to capitalize on their streaming investments, they will further leverage AVOD as TV viewers have proven they are more than willing to watch ads in exchange for free content.
Free ad-supported streaming video (AVOD or FAST) will be the biggest winner and the source of greatest competition in premium video in 2022. This will put pressure on buyers and sellers to develop differentiated Convergent TV strategies, as linear TV — despite declining audiences — still commands the largest total audience. Winners and losers will be separated by what’s in their content library, their owned channels for promotion, and the overall user experience.
What’s good for AVOD is good for everyone. Consumers and advertisers will fuel the rise of AVOD. The big questions remain the same as ever: how will they measure audiences, how will they verify delivery, how will they prove success, and what is a fair price across Convergent TV?
For more 2021 TV Advertising Insights, check out EDO’s recent posts on the top broadcast primetime shows or highest performing live sports programs for advertisers last year.