McDonald’s to spend “hundreds of millions of dollars” to upgrade digital marketing capabilities

McDonald’s is planning to invest “hundreds of millions of dollars” to upgrade its digital marketing capabilities over the coming years as the major fast-food giant shifts more of its marketing spending toward those channels, reports Restaurant Business.

According to a system message this morning, seen by Restaurant Business, McDonald’s plans to create a digital marketing fund in the U.S., accounting for 1.2% of franchisees’ digital revenues, starting in 2025.

The plan, states Restaurant Business, “is to shift spending away from marketing that has a lower return on investment and into digital marketing. It is uncertain what areas of marketing McDonald’s plans to cut to shift spending toward those digital channels, as those decisions will likely be made in conjunction with franchisees. Some of it could come from local marketing.”

“We have already begun to evolve our marketing approach in many markets by balancing our traditional mass media spend with investment in digital marketing capabilities that personalize the customer experience,” McDonald’s Global Chief Marketing Officer Morgan Flatley said in the message, sent to employees and franchisees.

More here.