In 2025, television advertising will become more dynamic, interactive, and consumer-centric to meet the evolving expectations of digitally-savvy consumers. Restaurants can harness these new TV ad opportunities by leveraging the power of targeted Video-on-Demand (VOD) platforms to reach and engage customers more effectively.
Video-on-Demand TV Ads for Restaurants
As consumers shift away from traditional TV, a new generation of video-on-demand (VOD) models are ushering in a new era of TV advertising for restaurants by prioritizing personalization, interactivity, and more precise targeting. Unlike traditional TV ads, VOD platforms leverage user data to deliver tailored ads to specific audiences based on demographics, location, and viewing habits, greatly increasing ad relevance and capturing audiences where they are most engaged.
CTV (Connected TV)
Connected TV Advertising refers to the placement of advertisements on internet-connected televisions, streaming devices, and other digital platforms that enable viewers to watch video content on demand. CTV content is streamed solely via TV screens that are connected to the internet, allowing restaurants to target specific audiences based on demographics, location, interests, and past dining habits.
How to Leverage:
Reach viewers streaming content via smart TVs, gaming consoles, or streaming sticks like Roku and Fire TV.
Use dynamic ad targeting to deliver ads customized to household preferences, such as promoting kids meals to homes with children.
Offer interactive ads allowing viewers to book reservations, order direct delivery, or access exclusive deals directly from their screen.
OTT (Over-the-Top) TV
OTT is the umbrella term for delivering different types of streaming television content via the internet, bypassing, or going over the top of, traditional cable and broadcast TV.
These models are empowering viewers with control and flexibility, and completely transforming the television landscape. Under this umbrella, there are several types of video-on-demand advertising platforms, including AVOD (Advertising Video On Demand), SVOD (Subscription Video On Demand), and TVOD (Transactional Video On Demand).
How to Leverage
Advertise on streaming platforms like Hulu or Peacock to reach audiences cutting the cord from traditional TV.
Create engaging video campaigns that highlight your seasonal dishes, chef specialties, or targeted offers.
Use geo-targeting to focus on local audiences, ensuring relevancy.
AVOD (Advertising Video On Demand)
AVOD (Advertising Video On Demand) provides free content supported by ads, making it accessible to viewers without subscription costs. This includes platforms like YouTube and Tubi.
How to Leverage
Utilize free, ad-supported platforms like Tubi or YouTube to target cost-conscious viewers.
Produce short, high-quality ads emphasizing value propositions, such as discounts, meal deals, or loyalty programs.
Run retargeting campaigns that remind viewers of your brand after they’ve seen your content.
AVOD Platforms
SVOD (Subscription Video On Demand)
Subscription Video On Demand (SVOD) offers an ad-free experience for a recurring fee, giving subscribers unlimited access to content. SVOD works by enabling subscribers to view content at any time and from any device with internet connectivity, offering a high degree of convenience and user control over content selection and viewing schedules.
How to Leverage
Sponsor exclusive content or shows that align with your restaurant’s brand image (e.g., sponsoring a cooking series).
Collaborate with food-focused channels within SVOD ecosystems to showcase your restaurant.
SVOD Platforms
TVOD (Transactional Video On Demand)
Transactional Video On Demand (TVOD) caters to those who prefer to pay only for what they watch, either renting or purchasing individual titles.
How to Leverage
Partner with platforms like Apple TV or Amazon Prime Video to promote your restaurant in pre-roll ads before pay-per-view movies or shows.
Advertise meal kits, signature sauces, or specialty items that customers can purchase and prepare at home, turning TVOD ads into an e-commerce opportunity.
TVOD Platforms
Benefits of Video-on-Demand Advertising for Restaurants
Personalization and Targeting
Connected TV Advertising (CTV) and Over-the-Top (OTT) platforms deliver ads that are tailored to demographics, dining preferences, and past behaviors, making ads more relevant and effective.
Interactive
By incorporating interactive content, viewers can browse restaurants, place online orders, explore menus, book reservations, and view offers without ever leaving their screens.
Concise and Non-Disruptive
Viewers’ short attention spans and aversion to interruption will push the adoption of shorter ad formats, with spots running as short as 6 seconds each. Seamless ad integration, such as product placements and sponsored content within shows and movies are also on the horizon.
Enhanced Measurement and Analytics
VOD offers restaurants measurable results in real time, with advanced analytics that track performance metrics like impressions, clicks, and conversions. Advanced analytics provide advertisers with detailed insights into ad campaign performance, with real-time metrics allowing advertisers to adjust and optimize ads mid-campaign for maximum impact.
8 Tips for Creating Effective VOD Advertising
Promote Delivery Services
With the continued growth of delivery, many OTT viewers may convert immediately with a compelling, engaging, convenience-focused ad. Highlight easy-to-use online ordering, exclusive deals, or special delivery menus by including a call-to-action (CTA) link or QR code that connects directly to your online menu.
Hyper-Targeted Ads
OTT and CTV platforms enable precise audience targeting based on location, demographics, dining preferences, and behaviors. Restaurants can tailor ads to local audiences, promoting menu items, deals, or events to diners most likely to visit.
Incorporate Interactive and Shoppable Features
Interactive ads allow viewers to book a table, order delivery, or explore the menu directly from their TV screens. Shoppable ads can enable customers to purchase meal kits, gift cards, or merchandise with just a click.
Highlight Unique Experiences
Using Augmented Reality (AR) and high-quality visuals, restaurants can create immersive ads showcasing their ambiance, chef specials, and signature dishes. Virtual tours of the restaurant or interactive recipe demonstrations could entice customers to visit or order.
Leverage Snack-Size Content
As ad formats get shorter, restaurants can use 6- to 15-second ads to highlight irresistible food visuals, limited-time offers, or catchy branding slogans. Quick, engaging spots can leave a lasting impression without overwhelming viewers.
Partner with Influencers
Collaborating with influencers or local celebrities who align with your brand can bring authenticity to ads. Restaurants can feature these personalities enjoying meals or recommending the restaurant, boosting trust and appeal.
Promote Sustainability and Values
Ads that highlight sustainable sourcing, eco-friendly packaging, or community involvement resonate with eco-conscious diners. Use storytelling to showcase your commitment to these values, appealing to conscious consumers.
Tailor Campaigns for AVOD Platforms
Advertising on free, ad-supported streaming platforms like YouTube ensures visibility without requiring potential diners to have subscriptions, helping to reach budget-conscious consumers.
FAQs
Is traditional TV advertising still effective?
Yes and no. If you have a local campaign focused on an older demographic, or a large-scale broad-reach campaign, traditional TV is a good way to reach your audience. But the benefits of CTV are quickly outpacing traditional TV due to precise targeting, cheaper costs, immediate response, and more accurate analytics.
What is the difference between CTV and traditional tv advertising?
Traditional TV advertising (also known as linear tv advertising), which delivers ads to viewers via broadcast or cable tv, might reach some of your customer base, but will also reach people outside of your target zone. Connected TV uses internet connection and various points of data to provide tailored, personalized ads to your target audience.
Take Away
Restaurants can harness new TV advertising opportunities in 2025 by leveraging advanced technologies like OTT, CTV, AVOD, SVOD, and TVOD to reach and engage customers more effectively. By tailoring campaigns to the strengths of these platforms, restaurants can effectively capture the attention of modern, digitally-savvy diners and convert them into loyal customers.
By embracing these new advertising strategies, restaurants can connect with audiences in innovative ways, driving traffic and building loyalty in an increasingly competitive landscape.
By Eileen Strauss
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