At last week’s Digital Entertainment World in Los Angeles, Visa CMO Antonio Lucio said the company “for the first time in the United States (would) spend more than 50% of our marketing budget on digital” in 2015 because, “that’s where the consumers are.”
Visa’s not alone in pulling money from the traditional TV ad space, but it’s not going quite as far as sandwich chain Quiznos, which reportedly is moving all of its spend to print and digital, especially video.
“Our advertising budget is kind of split between print media and digital, with a higher weight on digital advertising. Within that, probably, our primary focus is on video,” Tim Kraus, the director of interactive and innovation at Quiznos, told Entrepreneur.
Quiznos in the past has had a heavy presence in print and on TV, Kraus said. That changed after the firm filed for bankruptcy and after the company took a harder look at its diminishing returns on tradition campaigns.
“The consumers we’re trying to target are spending way more time online,” Kraus said. “We want to make sure wherever our audience is going, that’s where we have to go,” says Kraus, who said the core audience Quiznos is trying to reach is, essentially, Millennials. “So if they switch to consuming video content on their mobile device, or their tablet or their desktop computer, that’s where we have to be as a brand.”
Quiznos is working with an ad platform to help it deliver its ads to a targeted audience and to track who sees that ad, how long they watch it and on what device they consume it, all of which enable Quiznos to maximize its ROI.
Like Quiznos, Visa’s Lucio said the company is undergoing a “dramatic transformation.”
“What we dreamed just a few years ago is now reality,” Lucio said. “We can hyper market, we can do everything on mobile.”
And the decision to move to more digital advertising?
“The level of ROI on digital is significantly more,” Lucio said.
Lucio said almost one third of its digital spend would be on social channels, but added that as far as devices, its focus was mobile.
“Mobile is it. If there’s going to be one screen, it’s mobile,” he said. “It will be the screen we are going to engage for everything.”