As the restaurant industry turns into a battle for market share, stronger chains are increasing advertising in moves that could widen the gap with weaker competitors backing off the airwaves.

Panera Bread Co. (PNRA), which has posted double-digit percentage profit growth on tight cost controls, soon plans to launch its first television ads in three test markets to increase traffic. The bar chain Buffalo Wild Wings Inc. (BWLD), another fast-growing company, is doubling its broadcast presence during the coming college basketball tournament as it continues to court sports fans. Darden Restaurants Inc.'s (DRI) Olive Garden brand, a top performer among sit-down chains, has benefited from a constant presence on the airwaves and has started running ads on Spanish language networks to attract that demographic to its Italian chain.

In contrast, struggling casual dining chains like Red Robin Gourmet Burger Inc. (RRGB) and Ruby Tuesday Inc. (RT) have cut television advertising in recent months as they look to save cash to make it through the downturn.

With dining demand down as consumers cut back on eating out and cook more at home during the recession, restaurants are battling for a smaller pool of dollars, putting more pressure on companies to attract customers.

"It's a pure share fight," Oppenheimber & Co. restaurant analyst Matthew DiFrisco said. "And if you aren't on the airwaves, how can you remind people and pull them off the couch?"

Digital video recorders have somewhat diminished the importance of television ads, but communicating on the airwaves is still seen as vital to bring passive patrons back to the tables, which has caused some of the largest restaurants to increase spending in the area. Among fast-food chains, the 10 largest advertisers increased spending 6.1% in 2008 from the prior year, while the top 10 sit-down restaurant chains put 13% more toward advertising, according to data compiled by the research group TNS Media Intelligence.

Restaurants pulling back on marketing in this environment could risk seeing their market share deteriorate further, analysts say. That is especially true in the bar and grill category, which is seen as overbuilt with concepts that are too similar.

Also, casual-dining traffic is increasingly being driven by promotions, offering all-you-can-eat, two-for-one and other deals, which can eat away more traffic from those who aren't advertising to attract traffic.

"When there is such little differentiation between an Applebee's, a Chili's and a Ruby Tuesday's, you have to get out there and say why you're different from your competitor," Stephen Anderson, restaurant analyst at MKM Partners, said.

After Red Robin said in January that it would cut national cable advertising completely in 2009, analysts grew concerned that the drastic pullback would hamper same-store sales. While the move poses a risk to the top line, saving the cash is seen as prudent, especially since Red Robin, with most of its stores near malls or retail centers, draws a lot of its traffic from passers-by.

"That's not a person who's going to respond to advertising," DiFrisco said. "That person is already out there spending."

Instead, Red Robin is resorting to online advertising, direct-mail campaigns and in-store marketing, though such strategies are seen more as retaining existing customers than as adding new ones.

Restaurants are taking their divergent strategies on television advertising as rates are plunging, which helps their marketing dollars go further. Outback Steakhouse parent OSI Restaurant Partners LLC is keeping its advertising budget flat this year compared with last year, but hopes to reach more eyeballs to help the struggling company overcome slumping sales.

"Generally speaking, our plan this year is to spend the same dollars, but hopefully get more bang for our buck by investing in more rating points," Dirk Montgomery, finance chief at privately held OSI, said on a recent earnings call.

Other smaller chains are seizing on the opportunity to grab some market share with new ad campaigns. Culver's, a 395-store chain known for its frozen custard and "ButterBurgers," recently splurged for its first national television advertisement, which ran on E! channel's red-carpet coverage for the Academy Awards.

Chris Contino, vice president of marketing for the privately held chain, wouldn't disclose how much the Prairie du Sac, Wis., company spent on the ad, but said it came after a fairly successful year for the chain where same-store sales rose 3%.

"We do not care to participate in the economic downturn and this was another way of showing that," Contino said. "We're going to push. This is our time to get new customers and this is our time to remind our customers that we're still there."

-By Paul Ziobro, Dow Jones Newswires; 201-938-2046; paul.ziobro@dowjones.com