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Millennial, Gen-Z Digital Opps: Wendy's launches breakfast menu (Score 38)
Wendy's leadership expects a loss on breakfast in 2020 due to increased marketing costs and employee hires. It did not provide a timetable, but it predicts breakfast will bring in a 6-8% increase in sales. Wendy's plans to spend between $70-80 million on advertising in 2020, and will allocate around $45 million to breakfast, per its 2019 Q4 earnings report. The lunch and dinner advertising budget will not be affected by breakfast ads. Wendy's launched breakfast to compete with the successful breakfast operations of competitors such as Chick-Fil-A.
The chain will continue focusing on promotions such as its 4-for-$4 meal deal and limited time spicy nuggets. These help drive retail foot traffic among penny-pinching millennials and Gen-Z. Wendy's also captures this demographic through delivery and online ordering. The chain recorded 2.5% of its total sales through digital channels and expects that number to reach 10% by 2024. It is already works with Uber Eats and will continue adding delivery partners in 2020.
According to Adbeat's estimations, Wendy's spent around $25m on digital display ads in the last 365 days, equal to the $25m in the 365 days prior. It placed 96% of these ads as videos through YouTube onto youtube.com and spanishdict.com. It placed 3% site direct onto sites such as espn.com, ign.com, espnfc.us, funnyordie.com and ncaa.com.
Sellers-- Wendy's mainly targets male millennials and Gen-Z through digital display and national TV ads. The chain drastically reduced national TV ad spend in 2019, while digital display remained the same. I expect this trend to continue with additional funds transferred to digital channels. According to Winmo, Wendy's also uses local advertising such as print, radio and OOH. Take this link to see all Wendy's locations.
Agency readers-- Wendy's currently uses September 2019, but promoted CMOs are less likely to review their roster than new hires.