In 2019, the franchise spent roughly $447.3 million on worldwide advertising.
The company was founded in California, 1940 by the McDonald brothers & as of 2019, has a net worth of $163 billion.
So why does McDonalds continue to spend hundreds of millions of dollars?
If I asked you to think of the top 5 fast food outlets, I'd be very certain McDonalds would make the list.
It's not for trying to build a brand, it's to remain top of mind. So what would happen if McDonalds stopped advertising?
Firstly, they would sell almost as many hamburgers as before, but they would not have the financial drain of advertising.
Competitors would see this as an opportunity to take control of this space and make their mark. Slowly, but surely, McDonalds would start to fade away. While restaurants would continue to operate, competitors would be seen to be more visible and therefore increase their market share.
It's important to remember that McDonald's marketing strategy is diverse. It's not just relying on marketing one particular product. McDonald's is also involved with many charities and events globally.
So, how does this logic apply to real estate?
A billion dollar company is spending millions on marketing a brand that's been around for 80 years. In doing so they have hit the top of the market. The objective now is to stay there. Smaller companies with a smaller marketing budget struggle to keep up with the chain when it comes to brand awareness.
$20 on boosting your latest listing or agent profile might be "easy" to do, but is it going to give you any real value?
The beauty in McDonalds message is the simplicity. They make great hamburgers. That's their strength and their focus.
We see a lot of content coming through from agents and the core objective can often be lost.
Simplicity is strength.
The two key points I'd give anyone looking to build their brand or awareness are;
1) Simplify your strategy and hone in on the one thing that makes you stand out.
2) Double down on your current marketing if you want to be a leader in your space.
Written by Nic Fren