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Why McDonald's continues to advertise! 

If I ask you to name the top 3 fast food restaurants, I’m pretty sure most of you would have McDonald’s pop into your mind. So why does this 80-year-old company still spend millions on marketing each year? 

Let’s look at some stats first; 

  • The McDonald brothers opened their first store in 1940 (80 years ago) 

  • The Golden Arches logo were introduced in 1953 at a location in Phoenix, Arizona

  • McDonald's is the world's largest restaurant chain by revenue, serving over 69 million customers daily in over 100 countries across 37,855 outlets as of 2018. 

  • McDonald's is the world's second-largest private employer with 1.7 million employees (behind Walmart with 2.3 million employees) and is estimated to be have bought in over $21b in revenue last year.

Even if they ceased all marketing today, everyone already knows who they are and yes, I would like fries with that. So why continue? 

It’s to remind the public they are still here, and maintaining their relevance in our ever-changing world. It gives them a voice to speak to their customers.

Check out their Instagram. Within a single post they can let their 3.8m followers know what’s going on with their business, the latest menu item or a reminder of McHappy Day In November. 

Their marketing is not cutting edge by any standards but it is consistent.

So, what would happen if they stopped all marketing tomorrow? 

For a while you may continue to rank them in your top 3 fast food outlets, however, over time other business would start to creep in and take that crown. Seizing the opportunity to dominate that space and leave McDonald's to fade away in fast food heaven. 

Maccas has kept up to date with what their customers want and how they want to enjoy their "experience" in 2020 by using platforms such as their app and Uber eats. If you are like me you probably got a little hooked on the Maccas Monopoly last year.

Gary Vee (my idol) once said " When the Blockbuster executives explained why they didn’t want to acquire Netflix they used a variety of “facts” including that customers wanted a Blockbuster “experience”. They believed people liked running into their neighbors at the store and they wanted to purchase popcorn to take home. When I want a movie, I want to lay naked in bed and hit a button”. How true is that.

I don’t want to go out in the rain, I want to sit on my lounge and have my food brought to me and choose the movie I want to watch. How many of you are nodding in agreement right now? Look at the way your business is operating.

Let’s finish off with some key questions.

  • Are you changing with the times and giving your clients an “experience”, they actually want or is it what you think they want?

  • If you stopped all forms of advertising today would you still be in business in 6 months? 

  • If you increased your marketing budget to effectively reach more people, would that benefit you in the long run. 

Marketing/advertising is a long game and not a quick fix. 

There are many different strategies you can look at to ensure you are staying relevant & in the top 3. 

Written by Nic Fren


Bespoke Media Management


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