McDonald’s is moving huge sum of advertising budget to Digital Marketing
McDonald’s is significantly increasing its digital marketing efforts, planning to invest “hundreds of millions of dollars” in digital innovation over the next few years. This strategic shift includes developing new ordering channels, enhancing personalization, and expanding its loyalty program.
A recent system message revealed that starting in 2025, McDonald’s will establish a digital marketing fund in the U.S., which will be funded by 1.2% of franchisees’ digital revenues. This fund aims to boost digital marketing capabilities while potentially improving store cash flow by about $2,600 annually.
The fast-food giant is reallocating funds from traditional marketing to digital channels, although specific areas for cuts have not been detailed and will be decided with franchisee input. McDonald’s Global Chief Marketing Officer, Morgan Flatley, emphasized the importance of balancing traditional mass media with digital investments to enhance customer experiences.
McDonald’s digital sales have driven growth even in uncertain times, with its loyalty program boasting 150 million active users globally, including 34 million in the U.S., surpassing even Starbucks. Future investments will focus on new ordering options, such as web-based ordering without the need for an app, and improving personalized recommendations and loyalty point utilization.
Starting next year, funding for McDonald’s digital marketing tools, like its mobile app and CRM system, will come from this new digital marketing fund. Initially, this approach will be adopted in the U.S., Australia, Canada, Germany, and the U.K.
Tariq Hassan, McDonald’s U.S. Chief Marketing and Customer Experience Officer, and Whitney McGinnis, U.S. Chief Information Officer, highlighted the need to modernize McDonald’s marketing model to better connect with customers. This initiative aims to understand consumer behavior, optimize customer lifetime value, and maintain robust systems for data management and security.
In conclusion, McDonald’s is poised to elevate its marketing strategy through substantial investments in digital innovation, enhancing its ability to reach and engage with customers more effectively.
Want to know the one thing that every successful digital marketer does first to ensure they get the biggest return on their marketing budget? It’s simple: goal-setting. This is an absolutely essential practice for any digital marketer who knows how to execute their campaigns in a productive, cost-effective way. With a few. With a few simple tips, you can be doing the same in no time! In this blog, we’ll walk you through the first steps every savvy digital marketer takes to ensure that they’re on target to hit all their marketing objectives. Get ready for revenue!
Remember: even if the channel you’re considering is all the rage right now, it might not fit your brand. Always make informed decisions that directly relate to your company. Otherwise, your message won’t be delivered to its intended audience and you’ll have wasted time, effort and money.
Know Your Digital Goals
The first step is clearly identifying which goals you want to achieve. Get specific. Do you want to increase brand awareness? Are you all about locking in leads? Do you want to establish a strong network of influencers that can help you be discovered? How about pushing engagement on social media?
Get Specific
A useful tool for narrowing down your goals to ensure they’re viable is the SMART mnemonic. It’s important to get specific to understand exactly what you’re working towards, and help you break down the process of hitting your targets. This is exactly what this mnemonic helps you to achieve.
- Does the channel reach my intended audience?
- Is the channel sustainable and affordable within my company’s marketing budget?
- Will I be able to measure the success of the channel?
- Does the channel allow me to express my brand’s intended message?
- Do the channels I’m considering work together to convey my message?
Always Remember Your Goals!
Establishing a solid vision for your business is the first step to planning your digital marketing budget. Always keep your final goals in sight when organising anything for your company. When deciding which steps to take next in your business, ask yourself how they will help you achieve the goals you outlined in Step #1. This will ensure that you stay on track and prevent you from spending your budget on anything that won’t help you achieve.
Cum et essent similique. Inani propriae menandri sed in. Pericula expetendis has no,
quo populo forensibus contentiones et, nibh error in per.Denis Robinson
As your budget progresses and evolves, continue referring to your SMART objectives. Stay focused and remember your goals – they will always inform what your next step will be!
