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Digital Transformation

Quiznos Stops Using TV Ads to Focus on Digital Channel

The whole concept of a digital transformation would predict a sharp decline in non-digital advertising budget as the digital channel becomes much more important.  I don’t have statistics but here’s anecdotal evidence.  Entrepeneur.com has an article about Quiznos new Ad strategy.  They are pulling TV ads entirely although they will keep print media ads.

“Our advertising budget is kind of split between print media and digital, with a higher weight on digital advertising,” Tim Kraus, the director of interactive and innovation at Quiznos, told Entrepreneur. “Within that, probably our primary focus is on video.”

When Kraus says that Quiznos’ advertising dollars are split between print and digital, savvy readers may have noticed he didn’t mention one huge advertisement platform: television. That’s because, at least for now, Quiznos is ditching the traditional method that still dominates advertising spending. And it does dominate: in 2014, digital video ad spending is estimated at nearly $6 billion, while TV ad spending is about $69 billion, according to research firm eMarketer.

However, when Quiznos was forced to take a hard look at how they divvied up their ad dollars after declaring bankruptcy, television just didn’t make the cut.

“We’ve been around for 30 years, and we were a big TV advertiser, we were a big print media advertiser. And, we just saw the returns on some of these campaigns diminish,” says Kraus. “The consumers we’re trying to target are spending way more time online.”

So there you have it.  It’s telling that the they pulled from TV because they recognize where most of their buyers spend their time.

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Michael Porter

Mike Porter leads the Strategic Advisors team for Perficient. He has more than 21 years of experience helping organizations with technology and digital transformation, specifically around solving business problems related to CRM and data.

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