As more people are “cutting the cord” and switching from traditional TV to digital, streaming television advertising is the ideal strategy for local restaurant delivery marketing, offering highly targeted and engaged audiences within a specific geographic area.
Compared to broadcast TV commercials, streaming ads have the ability to reach potential customers within a precise delivery zone who are actively looking for dining options. Especially effective for restaurant delivery, advertising on streaming services translates into less wasted ad dollars spent promoting to customers beyond a targeted delivery radius, allowing for more cost-effective ad placement.
Streaming TV Advertising 101
Though advertising on streaming services can be a powerful way for restaurants to reach a targeted audience, navigating unfamiliar waters can be a bit daunting. We’ve put together this guide to help you dive right in.
Understanding Streaming TV
The terms streaming TV, OTT (over-the-top), and CTV (connected tv) are often used interchangeably, but each has a unique place within the digital advertising universe. Here’s a breakdown of each:
Streaming TV Advertising
Definition: Streaming TV advertising refers to any form of advertising that appears on content delivered over the internet instead of through traditional cable or satellite. Streaming TV advertising reaches viewers who watch live or on-demand shows and movies on streaming platforms.
Content Type: This broader, umbrella, term includes ad placement on both paid (subscription-based) like HBO Max and Disney and free (ad-supported) streaming platforms, like Hulu, Peacock, or Amazon Prime Video.
Device Scope: Streaming TV advertising can appear on a variety of devices including Smart TVs, mobile phones, tablets, laptops, and desktops.
Main Distinction: Streaming TV advertising covers any digital video content streamed online, regardless of the device, encompassing both OTT and CTV ads.
CTV (Connected TV) Advertising
Definition: Connected TV (CTV) advertising specifically refers to ads that play on internet-connected television screens. CTV includes Smart TVs with built-in internet and external devices that connect to a TV, such as Roku, Apple TV, XBox, and Amazon Fire Stick.
Content Type: CTV ads appear within apps and streaming services like Netflix, Hulu, or YouTube on Roku or a Smart TV app.
Device Scope: CTV advertising is limited to television screens that are connected to the internet, reaching audiences watching digital content on a TV screen rather than mobile, laptop, iPad, or desktop.
Main Distinction: CTV is a subset of OTT advertising, specifically focused on reaching audiences through internet-connected TV devices, delivering a TV-like experience over the internet.
OTT (Over-the-Top) Advertising
Definition: OTT (Over-the-Top) advertising is a type of advertising that appears on content delivered "over the top" of traditional cable via the internet. The term "OTT" refers to the method of content delivery rather than a specific device or screen.
Content Type: OTT ads appear on streaming platforms that deliver content over the internet, including live and on-demand shows, movies, and short videos.
Device Scope: OTT advertising includes ads delivered to any internet-connected device, including TVs, smartphones, tablets, and desktops.
Main Distinction: OTT advertising can reach audiences across multiple devices, not just TVs. This includes ads on streaming platforms like Hulu, YouTube, or Peacock, whether the user is watching on a Smart TV, smartphone, or laptop.
Summary of Differences:
Streaming TV Advertising: The broadest term, covering any digital advertising on streamed video content, regardless of device (includes OTT and CTV).
CTV Advertising: A subset of OTT, specific to internet-connected TVs, targeting viewers watching on a TV screen.
OTT Advertising: Refers to ads on internet-delivered video content, covering all device types.
2. Optimizing Your Budget
Test and Scale Up: Many streaming platforms offer low-cost entry points. Test different ad lengths and targeting options to find what resonates most before increasing your investment.
Leverage Cost-Effective Formats: Platforms such as YouTube have options like skippable ads ( advertiser only pays when viewers don’t skip) and non-skippable ads.
3. Creating Engaging Content
Highlight Your USP (Unique Selling Point): Shine a spotlight on attributes that make your restaurant special, i.e., a lovely view, a zen ambiance, or unique menu items.
Tell a Story: Short, engaging, “behind-the-scenes” videos can create a sense of connection.
Make It Seasonal: Promote seasonal items or deals to add a sense of urgency.
4. Leveraging Demographic and Geo-Targeting
Target Nearby Audiences: Set up ads to appear only within a certain radius around your restaurant.
Consider Demographics: If your restaurant appeals to families, young professionals, or other specific groups, use demographic targeting to reach them.
5. Tracking Performance and Optimize
Use Insights and Analytics: Most streaming services provide insights, allowing you to see which ads are performing best and make necessary adjustments.
A/B Testing: Test different messages, video lengths, and calls to action to measure which content brings in more customers.
ROI Tracking: Track the return on your investment by measuring spikes in orders, website visits, or social media interactions.
6. Promoting Online Ordering
To convince customers to order directly on your website, promote special deals in real time to attract more customers in your delivery radius. Example: “Hungry for a Bite? Head to our website for today’s lunch specials.”
Adding Streaming Ads to the Media Mix
The entertainment landscape is moving quickly beyond cable as more people are watching more content in more places than ever before. As consumers spend more time watching content than they do eating, drinking, or exercising, streaming TV advertising isn’t just a place to reach audiences—it’s a way to build lasting customer connections, making it an important addition to a restaurant’s media mix.
Below are 7 reasons why:
Targeted Reach
Unlike traditional TV ads, streaming ads allow you to pinpoint your audience based on demographics like location, interests, and dietary preferences. This ensures ads are seen by the right audience. Using geofencing, for example, you can tailor your strategy to reach users who have recently searched for "restaurants near me" or "dinner delivery" on the streaming platform.
High Engagement
Streaming viewers tend to be more engaged with the content they're viewing, making them more receptive to ads. With the ability to skip ads in some cases, viewer engagement is much higher than on traditional tv.
Visual Appeal
Using high-quality visuals to showcase your restaurant's ambiance, interior, menu items, and special promotions, streaming ads help create an enticing experience for potential customers.
Flexible Budgeting
Many streaming services offer ad options that work for smaller budgets, so even smaller establishments can compete.
Unique Call-to-Action Potential
Streaming ads can include interactive elements like QR codes and clickable links to your online ordering platform or reservation system, making it easier for viewers to take immediate action.
Cost-Effective
Streaming ad campaigns can be more budget-friendly, allowing smaller restaurants to reach the right audience without breaking the bank.
Local Focus
Because many streaming platforms allow you to target specific geographic areas, your ads are seen by people within your restaurant's zone and delivery radius.
Types of Streaming Ads
Go beyond traditional ads with one or more of these streaming options:
Interactive Ads: Allowing viewers to engage by clicking, hovering, or performing an action during an ad, interactive ads can increase viewer engagement.
Shoppable Ads: Allowing viewers to shop directly from the ad, customers could order food directly from their streaming device.
Branded Episodes: Partnering with a streaming service to create branded content that subtly integrates your restaurant into shows or special features can be powerful.
Sponsored Playlists: Some platforms, like Spotify, allow brands to sponsor playlists.
Overlay Ads: Semi-transparent ads, overlay ads that usually appear at the bottom of the screen, are non-intrusive ads that can be seen while the content plays.
Banner or Display Ads: Banner ads, which can be shown on the home page or when viewers are browsing content, are effective for brand recall prompting viewers to consider a restaurant while deciding what to watch.
Binge Ads: Shown specifically for binge-watchers, binge ads reward viewers for watching multiple episodes by offering them a special discount or deal.
Pause Ads: Pause ads appear when viewers pause the content. This ad format is subtle and less disruptive, appearing when viewers are still likely to be paying attention.
Product Placement: Partner with content creators or streaming platforms to feature your restaurant or food items within a show or film.
Custom Audiences: Many streaming platforms collect data about user preferences and viewing habits. You can use this to retarget ads to viewers who have shown interest in similar types of food, activities, or restaurants.
Retargeting Ads: Retarget viewers who have previously interacted with your brand by showing them ads on streaming platforms, keeping your restaurant at their top-of-mind and encouraging action.
Scannable QR Codes: By including a QR code within your ad that viewers can scan with their phone to access your restaurant’s menu, special offers, or a reservation page, is highly effective for driving immediate engagement
Audio Ads: Similar to radio ads, platforms like Spotify and Pandora allow for audio ads in between songs or during breaks.
What's Next in the Blog
As if this all wasn’t a lot to take in, there’s more. 2025 promises to deliver even more options to tv viewers, opening the door for even greater advertising options for restaurants. With Subscription Video On Demand (SVOD), Advertising Video On Demand (AVOD), and Transactional Video On Demand (TVOD) set to dramatically change the television marketing ecosystem, small businesses will have an opportunity to engage with customers like never before.
To learn all about it, check out our next blog article, Local Restaurants Benefiting from New TV Marketing Opportunities in 2025.
Take Away
Streaming TV ads are ideal for promoting restaurant delivery because they reach customers where they’re already engaged and spending time. Unlike traditional TV, streaming allows for precise audience targeting based on location, demographics, and interests, making it easier for restaurants to connect with potential diners who are most likely to order from your restaurant.
Streaming platforms support high-quality visuals that showcase the ambiance, food, and unique offerings of a restaurant, helping to build brand recognition, loyalty, and excitement. Streaming TV ads provide a cost-effective and flexible way to reach an interested audience and drive real results in both online and in-person traffic.
By Eileen Strauss
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