Male Opps: McDonald's shifts strategy (Score 42)
Sales Lead: Per CMO Tariq Hassan, McDonald's has started relying on its loyalty program to connect with consumers.
- With new promotions such as the adult Happy Meal, McDonald's is working to provide quality customer experiences that build company value.
- To do so, it recently launched a new marketing campaign centered around Gen-Z- and millennial-oriented nostalgia.
- The campaign features McDonald's purple mascot, Grimace.
- Like a cat running across a keyboard, the company tweeted “fhioea;odijcfaewklcldW,” followed by a selfie captioned “it grimace i’m taking over.”
- Since then, Grimace has taken over Twitter, TikTok, and Instagram.
- McDonald's also launched a new product, Grimace's Birthday Meal, which it's heavily promoting on the three aforementioned paid social channels.
- Additionally, McDonald's debuted a video game that stars a skateboarding Grimace.
- The game reportedly tugs at Game Boy Color heartstrings, adding yet another nostalgic layer.
- McDonald's also recently launched a limited-edition adult Happy Meal, which also appealed to Gen-Z and millennial adults who grew up on the fast food chain's food.
- The company will likely:
- Continue experimenting with nostalgia marketing
- Keep ramping up digital spend
- Conduct additional agency reviews following a recent roster shift (more below)
- Target demographic:
- Gen-Z and millennials with a skew toward men
- Especially parents
Additional spending insights:
- Broadcast insights (TV ad creative spend, effectiveness, impressions, and performance)
- YTD spend: So far this year, McDonald's has allocated roughly $76.7m toward national TV commercials, down 9% from the roughly $84.5m allocated within the same 2022 timeframe.
- Last year: The company allocated around $162m toward this channel last year after having allocated much more, around $240.5m, in 2021.
- 2023 ad programming: McDonald's 2023 commercials have targeted male sports enthusiasts watching shows such as NBA Basketball, NFL Football, Super Bowl LVII Immediate Pregame, Good Morning America, and the SportsCenter.
- Digital and social insights (digital ad spend, effectiveness, impressions, and performance)
- YTD spend: The company has spent approximately $76.1m on digital ads YTD, a 10% increase from the approximately $69.4m spent by this point last year.
- YTD data: Since the start of 2023, McDonald's has earned ~9.5b digital impressions via Instagram (30%), Facebook (29%), YouTube (20%), Instagram (7%), desktop video (6%), desktop display (6%), and mobile display (2%) ads.
- Last year: The company's estimated full-year 2022 spend reached $143.2m, 14% more than that of $125.5m in 2021.
- Additional channel insights
- The company utilizes Google Ads along with print, OOH, digital, local broadcast, radio, TikTok, Facebook, Instagram, Twitter, and online video (via Youtube Android, Youtube.com, and Youtube IOS) ads.
- McDonald's sponsors podcasts such as Stuff You Should Know, Dateline NBC, The Herd with Colin Cowherd, Global News Podcast, and The Bobby Bones Show.
Additional agency insights:
- Opportunity: Get in touch soon to see if any additional roster shifts follow McDonald's hire earlier this year of African-American market PR AOR Egami Group.
- Current agency roster:
- Egami Group: Multicultural (African-American market) PR AOR (January 2023)
- BODEN: Multicultural (Hispanic) PR AOR
- IW Group: Multicultural (Asian-American) PR AOR
- Two by Four Communications: Creative AOR
- Tattoo Projects: Creative AOR
- Zimmerman Advertising: Creative AOR
- Wieden + Kennedy: Creative AOR
- Doner: Creative AOR
- TBWA \ Chiat \ Day: Creative AOR
- The Marketing Store Worldwide: Creative AOR
- Starcom Worldwide: Media buying, GM media planning, and LGBTQIA+ media planning and buying AOR
- Lopez Negrete Communications: Creative, media, multicultural, and PR AOR
- Loud and Live: Multicultural and experiential AOR
- Burrell Communications Group, Inc. : Multicultural (AA/Asian American) AOR
- Admerasia: Multicultural (AAPI/Asian American Pacific Islander) AOR
- Alma: Multicultural AOR
- Golin: PR AOR
- Canvas Worldwide: Media planning agency partner (Hispanic business)
- R/GA: Digital agency partner
- INVNT Group: Experiential agency partner
Insight Sources: Broadcast insights estimated by iSpot; digital spend insights estimated by Pathmatics; additional channel insights estimated by Vivvix; podcast insights by Podchaser.