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Insight of the Day: McDonald’s to Invest Hundreds of Millions in New Digital Marketing Strategy

Key Points

  • Digital Focus:  McDonald's plans a major investment in its digital marketing, aiming to enhance its MyMcDonald's Rewards loyalty program and digital ordering systems.

  • New Funding Model: US franchisees will contribute to a new digital marketing fund starting in 2025, with contributions based on digital sales percentages.

  • Shift from Traditional Media: The move signifies a decrease in spending on traditional advertising like TV commercials in favor of personalized, digital-first strategies.

  • Ambitious Goals: McDonald's aims to improve its ordering channels (like ordering via website without an app), customer personalization capabilities, and expand its MyMcDonald's Rewards loyalty program.

Why this Matters

  • McDonald's recognizes the power of digital engagement for driving sales. The loyalty program was a huge success in Q1, with members contributing over $6 billion in US sales.

  • This reflects an industry-wide trend towards personalized marketing experiences and meeting customers on their preferred digital channels.

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