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Gen-Z, Millennial eCommerce Opps: Domino's Pizza adjusts messaging & increases ad spend to promote delivery & carryout (Score 87)
Pizza chain Domino's provided masks, globes and thermometers for both corporate franchisee employees due to the global pandemic; it is currently focused on its delivery and carryout business, which should be pretty popular since Americans are ordering pizza from home now more than ever. Domino's adjusted its advertising "quite significantly" in order to promote delivery, having rolled out about an ad a week for the six weeks ending April 23. According to its Q1 2020 earnings call, the company opened 35 locations in Q1 and only closed 5.
Additionally, Domino's CEO, Ritch Allison, told QSR the company is positioning itself for a "new normal"; he doesn't think consumers will snap back to old habits when dining-room closures life. The company's technology helped it pivot to contactless delivery and carryout seamlessly, and it will continue this focus for the foreseeable future.
Among the chain's pandemic-related cause efforts, it donated 900 pizzas to the Flint (MI) Cares Help Centers and free pizzas to students throughout Miami (FL).
Adbeat estimates out the $7.7m the company spent on digital display ads since April 2018, 82% ($6.3m) was spent after April 2019. It placed 83% of these as video ads through YouTube onto youtube.com. It placed 11% programmatically through Google Display & Video 360 onto sites such as yahoo.com, espn.com, cwtv.com, goodmorningamerica.com and fivethirtyeight.com. Finally, it placed 6% site direct onto sites such as yahoo.com, espn.com, cwtv.com, secsports.com and theundefeated.com.
According to $154.2m on national TV ads YTD, up from $136.7 during the same period of 2019. Total spend equaled $465.5m in 2019 and $409.7m in 2018. It primarily targets Gen-Z and millennials with a slight male skew via this channel (see targeting right).
Sellers, offer omni-channel ad spend since Kantar data reveals Domino's also utilizes OOH, print (newspapers) and radio; however remember companies are investing in OOH less heavily since consumers aren't driving to and from work as often right now. Considering the company targets Gen-Z and millennial parents, especially dads, who are listening to podcasts, watching TV and spending time on social media now more than ever since they're mostly stuck at home, you may also want to offer podcast, OTT and/or paid social ad space. Since Domino's often targets men, especially offer sports-centered broadcast.
Agency & martech readers - Since we haven't heard of any roster changes after Domino's promoted SVP and CMO Art D'Elia in Mindshare (media buying AOR, start date unknown). Considering the length of Domino's relationship with Crispin Porter + Bogusky, specifically offer creative and analytical digital services.