McDonald's Moves U.S. Media Buying and Planning to Publicis Groupe's Starcom from Omnicom's OMD

McDonald's is consolidating responsibility for its multi-million dollar national media buying and planning to Publicis Groupe's Starcom as part of an effort to streamline its digital marketing strategy. Particular attention is being given to a tighter integration between paid and earned/owned media programs, which aligns with the way more consumers connect with marketing messages, the brand's representatives told Adweek. The move upends a two-decade partnership with Omnicom media shop OMD USA. Still, it's not a complete break; OMD will continue to work on McDonald’s USA local media as well as some unspecified international markets, McDonald's said. According to Kantar Media, McDonald's spent $363.6 million on national media for the first nine months of 2021—a 2.8% decrease from $374.2 million during the same period a year before. The numbers indicate McDonald's shifting priorities in national advertising, as a comparison between 2020 and 2019 further shows. Two years ago, McDonald's allocated $658 million to national media; in all of 2020, the brand's expenditures in that segment were $599.9 million, an 8.8% drop. It's important to note that Kantar's spending figures do not include social or paid search. McDonald's declined to comment on its media budgeting. But it seems reasonable to assume that the company transferred more dollars to those digital categories, making it appear that its national ad spending decreased, when in fact, may have remained stable or even increased. In any case, McDonald's shift in the handling of its media duties represents a major expansion of the brand’s existing work with Publicis. The national media buying and planning oversight is being added to Publicis' management of customer data analytics and digital marketing across McDonald’s app, website and CRM channels. McDonald's plans to transition its media buying and planning to Starcom starting in January. The completion of the shift is expected by the end of Q1 2022, McDonald's representatives said. Inside DDB Sydney’s Custom Agency Model for McDonald’s A nod to Publicis' digital prowess Publicis was able to impress the fast food chain and win its lucrative national media and buying by proving its digital acumen on other assignments, sources told Adweek. The change also bears the mark of Tariq Hassan, who was named McDonald's CMO in August. Hassan, who also serves as Digital Customer Experience Officer for McDonald's USA, had previously been Petco's marketing head. “Since we started working with Publicis last year, they have demonstrated a deep understanding of McDonald's consumers, real clout in the digital marketplace and a proven track record of innovating toward our digital ambitions,” Hassan said in a statement. “They are the right team to help McDonald’s maximize our marketing investments, both in the near-term and as we look to the future. We're grateful to OMD USA for their many years of partnership and helping us reach the position of strength the brand is enjoying today.” “We are proud to expand our partnership with McDonald’s in the U.S., working together to place the customer at the heart of their business,” said Publicis Groupe Chairman and CEO Arthur Sadoun, in statement. “With the team at Starcom, we look forward to driving a truly personal, omnichannel experience for all the fans of this iconic brand.” A renewed promise on diversity Apart from the arrival as Hassan as CMO, McDonald's has been trying place more emphasis on digital initiatives under its Accelerating the Arches marketing strategy, which began rolling out in 2020. The ambitions associated with that effort can be found in the My McDonald's Rewards program, which the company said has attracted more than 21 million enrollments. As it put its national media spend in Starcom's hands, McDonald's representatives said the company has also renewed its May 2021 promise to raise its investment in media companies run by diverse owners. Last month, media mogul and veteran TV personality Byron Allen, who has vigorously pressed brands to spend more on Black-owned media, saw his $10 billion lawsuit against McDonald's get dismissed by a Los Angeles judge. Allen, the owner of Entertainment Studios Networks Inc. and Weather Group, claimed that McDonald's discriminated against diverse media companies. But a judge ruled that Allen's lawsuit failed to offer enough evidence that McDonald's actively avoided spending on Black-owned media. The brand's "diverse-owned partners" include media companies and platforms operated by Black, Hispanic, AAPI and LGBTQ people and women. The commitment to these companies is slated to more than double, moving from 4% to 10% of national advertising spend between 2021 and 2024. Spending with Black-owned properties specifically will increase from 2% to 5% of national advertising spend over this time period, McDonald's said. McDonald’s Famous Orders Deal Hits a High Note With the Mariah Menu