McDonald's decision to consolidate an estimated $1 billion-plus in global media duties with OMD capped a yearlong quest by the Omnicom Group network to capture the $500 million-plus in worldwide McDonald's business it didn't already handle, sources said.
OMD worldwide CEO Joe Uva and North America CEO Page Thompson first broached the consolidation idea with Light and McDonald's COO Charlie Bell last winter, sources said—about the time the two client execs called their creative agencies together to pitch the company's first global ad campaign. The deal was closed last month.
The heart of the pitch was the proprietary software OMD uses to control media planning and message delivery worldwide across all marketing communications, not just paid media, sources said. "Global media didn't have a vote at McDonald's," said the client's global chief marketing officer, Larry Light. "Now, for the first time, we'll have it." Economies of scale was of course a motivator to consolidate, but much of the savings will be reinvested in opportunities such as the Internet and outdoor around the world, Light said.
Global media duties had been split among five agencies, including Publicis Groupe's Starcom and Grey Global Group's MediaCom.
OMD referred calls to the client.
Paul Davey, OMD San Francisco managing director, was promoted to worldwide account director on McDonald's last week. Also, Omnicom named Janet Riccio, manager of the fast-food chain's international account at DDB Chicago, chief integration officer on the business.
Separately, Publicis Groupe's Leo Burnett, Chicago, last week won a global job to promote the Big Mac. Omnicom's DDB and TBWA also pitched. Spending is undisclosed.