McDonald's to review 'one agency model' in global media shake-up

Pippa Chambers
By Pippa Chambers | 27 October 2017

McDonald's is reviewing its US$2 billion global media buying account, which locally is worth $100 million to its media agency OMD.

It was only April this year that OMD Australia won the final slice of the national account, taking the $20 million media account for McDonald's in Queensland and the Northern Territory. The Omnicom agency, which has the business in all other states and territories, had been vying for the final portion of the business, which sat with rival UM for the last 15 years.

The fastfood giant, which hasn’t done a formal global media review in about 14 years, is looking to find more efficient ways to spend its ad dollars.

McDonald’s vice-president of global media and customer relationship management Bob Rupczynski said: “As part of our journey to build a better McDonald’s we are striving to make our marketing dollars work harder - through more efficient  media spending and better connections with our customers.

“This week we are embarking on our first formal global media review in more than a decade as we aim to move from a single global media agency to a small roster of preferred agency brands, with the intention of ensuring best-in-class media services and capabilities for all of our markets. Our long-term relationship with OMD remains strong, and they will be participating in this process.

“The efficiencies gained from this move, together with funds released from on our recent decision to end our Global Sponsorship of the Olympic Games, will help us strengthen our investment towards our digital efforts. Our increasing focus on data-driven marketing will create a new level of personalized value and convenience to our customers, helping to further accelerate McDonald’s growth.”

Speaking to AdNews about the state of play in Australia, a McDonald's spokesperson said: “McDonald’s Australia recently consolidated its national media business with OMD. Our relationship with OMD is strong, and we are proud of the work we have delivered together. We are continually looking for ways to improve our impact and drive efficiency in our media and marketing approach and are supportive of the global review.”

It's a different approach to what the brand has done with its creative agencies, choosing to consolidate the account into DDB globally, removing Leo Burnett from its roster.

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