How Media Works: Advertising and the Purchase Funnel for Restaurant Advertising 1 A Yankelovich Study for the Television Bureau of Advertising

Study Objectives Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand: The role of television advertising in driving consumer actions throughout the purchase decision process How television interacts with other media platforms, including new media such as the Internet How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2 Source: TVB/Yankelovich How Media Works, April 2009

MethodologyMethodology Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them. Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded. Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them. Each respondent then completed an ad survey for up to three of these categories. The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc. The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied. 3 Source: TVB/Yankelovich How Media Works, April 2009

A Majority of Respondents are In the Market 4 Are you currently considering a purchase in the Restaurant Category? (Asked of those who recalled seeing a TV ad for a restaurant* in the last 2 months) Source: TVB/Yankelovich How Media Works, April 2009 * Includes family dining, fast food, fine dining establishments, or pizza delivery service.

Customer Profile: Restaurant Advertising 5 Source: TVB/Yankelovich How Media Works, April 2009 Saw a Restaurant Ad that Made an Impression Currently Considering a Purchase in this Category Made a Purchase in this category in the past 6 months Made a Purchase in this category in the last 2 weeks Male 46.3%47.2%46.0%45.6% Female 53.7%52.8%54.0%54.4% %28.7%30.8%32.2% %61.2%61.5%63.3% %61.2%58.7%60.9% %29.3%30.5%28.4% Urban 31.7%28.7%31.2%31.1% Suburban 43.7%46.6%44.4%46.7% Rural 24.5%24.7%24.4%22.2% HHI <$30K 26.2%22.8%25.7%21.0% HHI $30-$70K 44.5%45.3%45.4%47.3% HHI $70K+ 24.5%27.9%24.6%26.9% HHI $100K+ 11.3%13.0%11.6%13.9%

Restaurant Ads on Television Were the Most Recalled of all Categories Included in the Study 6 Source: TVB/Yankelovich How Media Works, April 2009 Saw an ad that got your attention:

Over 75% of Those Who Recently Saw a Restaurant TV Ad Made a Related Purchase in the Past Month 7 Source: TVB/Yankelovich How Media Works, April 2009 Last time made a restaurant purchase: 76% of those who recently saw a restaurant ad made a purchase in the past month

Eight in Ten of Those Who Saw Restaurant Ads on TV Say the Advertisements Made a Positive Impression 8 Source: TVB/Yankelovich How Media Works, April 2009 Type of impression made by restaurant TV ad: 80% of those who saw restaurant ads rated them positively, compared to 70% across all 15 categories.

Restaurant Ads are Considered More Informative, Attention-Getting and Relevant Than Other Ads 9 Source: TVB/Yankelovich How Media Works, April 2009 Ratings of Restaurant Television Ads: Total Restaurants How much did it get your attention? 54% total 64% restaurants 42% total 55% restaurants How relevant was it? 53% total 63% restaurants How informative was it?

Those Who View Restaurant Ads are More Likely to Make or Consider a Purchase, or Talk to Others About the Ad 10 Source: TVB/Yankelovich How Media Works, April 2009 Actions Taken After Seeing TV Commercial for Restaurants TotalRestaurants Index to Total Any (Net)49%61%124 Considered purchasing the product or service17%23%135 Talked with others about the advertisement16%20%125 Went online to learn more about the product or service advertised14%4%29 Remembered you had seen the product or service advertised before11%7%64 Purchased the product or service in a store10%22%220 Visited a store or location to learn more about the product or service8%7%88 Tried to find the advertisement on the Web5%2%40 Looked in a newspaper or magazine to learn more about the product or service 4%1%25 Purchased the product or service online3%2%67 Contacted the company in the advertisement3%1%33 Sent someone an about the product or service3%1%33 Sent someone a Web-site link about the product or service2%1%50 Other action3%5%167 Did nothing51%39%76

Nearly all of those who saw restaurant ads say they have seen the advertisements more than once 11 Source: TVB/Yankelovich How Media Works, April 2009 Number of times saw restaurant TV commercial in past 2 months:

Multiple Exposure to TV Ads Leads to a Much Higher Likelihood of Purchase 12 Source: TVB/Yankelovich How Media Works, April 2009 Among those who recently saw a TV ad for Restaurants # TV Ad Exposures Restaurants Recall 1-3 ad exposures Recall 4+ ad exposures Any (Net) 61%56%68% Considered purchasing the product or service 23%22%23% Purchased the product or service in a store 22%17%27% Talked with others about the advertisement 20%19%21% Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 7% Visited a store or location to learn more 7%6%7% Went online to learn more about the product or service 4% Purchased the product or service online 2% Tried to find the advertisement on the Web 2%1%2% Sent someone a Web-site link about the product or service 1% Looked in a newspaper or magazine to learn more 1% Sent someone an about the product or service 1% - Contacted the company in the advertisement 1%0%1% Other action 5%4%6% Did nothing 39%44%32% Actions taken after seeing a Restaurant TV ad

Recall of Ads in Other Media is Low in the Restaurant Category, Compared to 15-Category Norms 13 Source: TVB/Yankelovich How Media Works, April 2009 Saw ad for same product or service in a media other than TV: TotalRestaurants Index to Total Any (Net)46%31%67 On the Internet20%9%45 In a newspaper18%10%56 On the radio12%8%67 In a magazine11%4%36 In an offer8%6%75 On a billboard or other outside sign7% 100 Other media3%4%133 Did not see, hear, or read in any other media35%50%143 Not sure19%20%105

Restaurants Advertising Impact at Various Stages of the Consumer Purchase Funnel 14 Source: TVB/Yankelovich How Media Works, April 2009 AwarenessInterestConsider Want toVisit Make Purchase Purchase Store/Website Purchase Index = 95 Index = 101 Index = 109 Index = 121 Index = 105 Index = 123

Restaurants Media Impact at Various Stages of the Consumer Purchase Funnel 15 Source: TVB/Yankelovich How Media Works, April 2009 Media cited by less than 3% of respondents were incorporated into the total for other.

ConclusionsConclusions The purchase cycle for the restaurant category is relatively short, and many consumers are in-market at any given time. Commercial awareness and recall are much higher in the restaurant category than the 15-category averages. Ads in this category are considered much more relevant than average. Television ads in this category lead to actual purchases or purchase consideration, and prompt viewers to discuss the ads with friends. Those exposed to a restaurant ad multiple times are significantly more likely to make a purchase. 16 Source: TVB/Yankelovich How Media Works, April 2009