McDonald’s is revolutionizing its marketing strategy by launching a digital marketing fund, funded by contributions from its U.S. franchisees. This bold move aims to modernize the fast-food giant’s marketing tactics, strengthen its competitive position, and solidify its presence in the digital landscape.
The company’s plan, set to roll out next year, mandates U.S. operators to contribute to this digital marketing fund. This initiative is part of McDonald’s broader strategy to elevate its digital operations, with substantial investments geared towards enhancing its loyalty program and introducing new ordering channels, including web-based orders that do not necessitate an app.
With over $6 billion in global system-wide sales contributed by loyalty program members in the first quarter alone, McDonald’s is leveraging its digital capabilities to attract and retain more customers. The company aims to expand its loyalty program membership to 100 million by 2027, with 34 million active digital customers in the U.S. alone.
To support these digital marketing endeavors, McDonald’s is advising franchisees to allocate a portion of their existing marketing budget to the fund. Starting next year, U.S. operators will contribute 1.2% of projected identified digital sales to the digital marketing fund, aligning with a new funding model that will also be adopted by franchisees in other key markets globally.
President and CEO Chris Kempczinski emphasized McDonald’s ambitious goal to more than double system-wide sales attributed to loyalty program users by 2027, highlighting the company’s unique growth potential. The launch of the Digital Marketing Fund on January 1, 2025, will accelerate McDonald’s digital investments and enhance its competitive edge in major markets worldwide.
This strategic shift towards digital marketing underscores McDonald’s commitment to innovation and customer-centricity in the digital age, as the company continues to experience significant growth in its digital channels and loyalty program.