Male Opps: McDonald’s announces CosMc's stores amid digital spend increase (Score 42)
Sales Lead: McDonald's recently announced a new kind of expansion with test locations of a new store brand, CosMc's..png)
- The company will reportedly test these new stores in various markets starting in early 2024.
- The introduction of CosMc's reflects efforts to accelerate the rate at which McDonald's opens new stores.
- McDonald's is specifically expanding more into the S and SE since more consumers have started moving to this are.
- The company will likely:
- Continue experimenting with nostalgia marketing (more here)
- Keep ramping up digital spend
- Bolster localized ad spend in the S and SE to promote the new stores
- 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: McDonald's has allocated roughly $81.6m toward national TV commercials YTD, down 9% from the roughly $89.7m allocated by this point last year.
- 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 the 2020 NBA All-Star Game, the 2023 Pro Bowl Game, the Super Bowl LVII Immediate Pregame, Good Morning America, and SportsCenter.
- Digital and social insights (digital ad spend, effectiveness, impressions, and performance)
- YTD spend: So far this year, the restaurant chain has spent approximately $81.5m on digital ads, 5% more than the approximately $77.8m spent within the same 2022 timeframe.
- YTD data: McDonald's has earned ~10.3b digital impressions via Facebook (30%), Instagram (29%), YouTube (20%), Twitter (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: If you haven't yet done so, reach out sooner than later to offer additional support Egami Groupfollowoing McDonald's January 2023 appointment of African-American PR AOR .
- 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: 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.
