Omnicom Group wins and the Publicis Groupe loses in the watershed McDonald’s agency review that started last spring and ended today.
The McDonald’s advertising business, worth an approximated $1 billion in billings, could be a goldmine for Omnicom, although McDonald’s is stated to have actually negotiated a difficult agreement that will, to some degree, tie the company payment to the efficiency of the marketing done by the brand-new entity.
Omnicom will assembly a new shop in Chicago specifically committed to developing marketing for McDonald’s, which is moving its global headquarters from Oak Brook, Illinois to Chicago in early 2018.
In a memo to DDB personnel, Wendy Clark, CEO of DDB North America, detailed what will take place next as a result of the win: “The outcome is a tailored agency developed specifically for McDonald’s with data and intelligence at the core, fueling brilliant innovative work that’s delivered at the speed of the market, all at an efficient cost.”
The new Omnicom firm servicing McDonald’s might swell to consist of as numerous as 200 people, with 100 of them brand-new hires, sources stated, and another 100 brought in from existing Omnicom shops, consisting of DDB Chicago, which has actually been a McDonald’s roster agency for years, and perhaps Energy BBDO Chicago, another local Omnicom shop. The brand-new McDonald’s store must be completely operating within 4 months.
McDonald’s (NYSE: MCD) decision to go with Omnicom over Publicis Groupe need to not shock anyone who has followed the marketing market for any length of time. Omnicom always has been the more artistically fertile network of agencies. And if McDonald’s is really severe about developing excellent creative that can help the business achieve the turn-around still ongoing at the hamburger leviathan, then Omnicom was the logical choice all along.
Meanwhile, Publicis Groupe (EPA: PUB) and one of its primary firms, Leo Burnett Chicago, will be left on the outside searching in as a new era in McDonald’s marketing will start.
Burnett, on and off, had actually been a McDonald’s roster ad company for more than 35 years. The store produced some great work for McDonald’s in time, but bit that might be considered amazing.
In the last few years, as Burnett dealt with a renovate of the “I’m Lovin’ It” project, the work had actually become much more spotty. And the 2016 Olympics work was typical at best.