Brief:

• Jack in the Box is running a gamified advertising experience with Spotify that gives listeners a chance to win free tacos with any purchase. The interactive experience is based on the classic game "Two Truths and a Lie" and can be found on a dedicated microsite hosted by Spotify, according to an announcement.
• Jack in the Box is running three 30-second audio spots on the ad-supported tier of Spotify that urge people to tap on a link pointing to the game. "Jack's Two Truths and One Lie" is a quiz game that covers general trivia and the history of the fast-food chain that has more than 2,200 locations in the U.S.
• At the end of the quiz, Jack in the Box offers a link to download a coupon for two free tacos with any purchase. The results page also links to "Jack Box's Party Playlist" on Spotify and a 30-second video spot for the burger chain. Spotify users can add the playlist to their music libraries and share it with friends on the platform.

Insight:

Jack in the Box is leveraging Spotify's popularity as an audio streaming service to engage users with a gamified advertising campaign.

Gamified content can help brands focus consumer attention on a brand-safe experience that's entertaining and creates a stronger emotional bond than a traditional ad plaement. The effort could also help to identify which Spotify listeners are most likely to be loyal customers of Jack in the Box as they answer trivia and save its music playlist to their libraries, which may be useful for targeting future campaigns. 

By running a campaign on Spotify, Jack in the Box can target consumers who listen to its free, ad-supported tier. Spotify's ad-supported audience grew 31% to 163 million monthly average users in the second quarter from a year earlier, with 26% of those users residing in North America where Jack in the Box operates. Spotify has offered dynamic ad insertions on its music platform for several years, and this year introduced streaming ad insertion for podcasts to help marketers target listeners of its growing library of non-music content.

About 214 million people in the U.S. play video games, including 64% of people ages 18 and older, and 70% of people younger than 18, per the Entertainment Software Association, whose survey was taken before the coronavirus pandemic led to a surge in gaming among homebound consumers. The popularity of video games makes gamified experiences like Jack in the Box's online quiz more likely to pick up traction. The burger chain also can reach younger consumers who are more likely to be fast-food consumers and largely disregard traditional media channels like TV. 

Jack in the Box's gamified campaign comes as the fast-food chain recovers from the negative effects of the pandemic on restaurant sales. With the easing of lockdowns that led restaurants to temporarily close their dining rooms, Jack in the Box experienced 6.6% same-store sales growth in its most recent quarter from the prior year.

Its performance improved as the quarter progressed, with indications that same-store sales have risen 8% in the past month, better than its rivals, Barron's reported. The company spent $3.9 million on advertising, slightly less than the $4 million spent a year earlier, amid a slight pullback in April, per its earnings call.