Media Buyer + Planner: McDonald’s Agency Crunch; Reducing Online Ads

Media Buyer & Planner Today   July 13, 2017     Top Stories       #1 McDonald's to Slash Local Agencies The fast food giant is looking to cut millions of dollars in ad costs and to better focus it message. To do that, McDonald's has decided to reduce the number of local creative agencies it uses to handle marketing for its cooperative franchise groups that operate throughout the U.S., Ad Age reports. Some 60 agencies currently do local creative work for nearly 200 McDonald's co-ops. The chain plans to reduce that number to 10 or less, sources told Ad Age. Local co-op creative will also be tied more into national campaigns, rather than being localized. Some of the local agencies had also handled media duties until recently when McDonald's moved all media for co-op marketing to Omnicom's OMD, which was already the chain's national media buyer. McDonald's uses a dedicated Omnicom creative agency, We Are Unlimited, to primarily handle its U.S. national advertising. Agencies will begin their pitches to McDonald's beginning on July 17. They will include both current creative agencies working for the chain and newcomers. The review is being run on McDonald's behalf by Select Resources International. WHY THIS MATTERS: With a massive number of fast food units across the country, McDonald's wants to find a better way to tell its brand story. The chain believes streamlining its number of agencies is one way to accomplish that. The changes are being made under Chris Kempczinski, who was promoted to president of U.S. business earlier this year and U.S. chief marketing officer Morgan Flatley, who joined the chain in April from PepsiCo. A Take: Ad Age   #2 Online Publishers Reduce Ads to Boost Revenue With websites having gotten so crammed full of flashing banner ads, auto-playing video, content blocking overlays and widgets recommending sponsored story links, many online publishers are now taking a "less is more" approach, The Wall Street Journal reports. Many are stripping out irritating ad formats and limiting the number of ads on each page. The result has been more engaged consumers and increased revenue as marketers start to see better response to their ads. While there are less ads per page and less revenue per page, users are viewing more pages and sharing more content so ad performance is up and more can be charged for the ads that do run. WHY THIS MATTERS: The new thinking is that squeezing as many ads as possible on every page is a shortsighted strategy. However the new policies haven't totally eliminated all user annoying ads. The Journal reports that autoplay video ads are still appearing on some sites. Why? Because the providers of those ads pay publishers millions of dollars a month, in some instances, to continue running them. A Take: WSJ   #3 Turner Completes Upfront Selling The cable TV network company has wrapped up its upfront ad selling, getting ad price hikes in the high-single digits for programming on its TNT and TBS networks, sources told Adweek. Turner also saw strong demand for advertising on its cable news network CNN. Overall ad volume taken in increased by mid-single digits. Shows drawing the most interest were dramas Animal Kingdom and Claws and Full Frontal with Samantha Bee. WHY THIS MATTERS: Turner's upfront completion means all the major TV network companies are done with next season's ad selling. Turner's finish comes a day after NBCUniversal completed its upfront selling. Fox Networks Group was done a week ago. Prior to that Viacom and Disney-ABC concluded their upfront selling, as did CBS and The CW. A Take: Adweek     #4 Pepsi To Pick from Omnicom Agencies (Ad Age) #5 R3 Ranks Agencies Based on New Business (Adweek) #6 Deloitte's Heat Wins Global Creative for John Hancock (Ad Age) #7 How Video Buyers Can Avoid Fraud (Digiday) #8 Spending Hike Helps Levi Strauss Boost Sales (MediaPost) #9 WPP Acquires German Agency Thjnk (Ad Age) #10 Kantar to Provide Programmatic Data (MediaPost)   Stat Of The Day     1.26 Dollars in billions that will be spent on addressable TV advertising in 2017, according to projections by eMarketer. That's up by 65.8% from 2016. It is expected to grow to $2.25 billion in 2018 and reach $3.04 billion by 2019. It is still just a tiny portion of overall TV all spending. In 2017 it will make up just 1.7% of all TV ad spending and by 2019, will total just 4% of all TV ad spending. – Reported by MediaPost   Ratings     ABC Wins With 'ESPYs' by Michael Malone ABC took Wednesday ratings honors thanks to the ESPY awards, scoring a 1.4 in viewers 18-49, per Nielsen's overnights, and a 6 share. That topped CBS' 1.0/4. The ESPYs took up the whole of prime. Last year's ESPYs did a 1.6. CBS saw Big Brother climb 6% to 1.9, before the premiere of drama Salvation did a 0.7. Fox was at 0.8/3. MasterChef did a flat 1.0 and The F Word With Gordon Ramsay a flat 0.6. NBC scored a 0.6/3. Little Big Shots: Forever Young scored a 0.9, down a tenth of a point from last week, while The Carmichael Show rated an even 0.7. A Carmichael rerun did a 0.5, and a This Is Us repeat finished up prime. The CW rated a 0.2/1. An Arrow repeat led into The 15 Most Iconic Summer Blockbusters of All Time at 0.2. Among Spanish-language networks, Telemundo did a 0.6/3 and Univision a 0.5/2.   Fates & Fortunes     • JON ALFERNESS was named head of ad products at Pinterest, while MEREDITH GUERRIERO was appointed head of partnerships for the East region and will oversee the company's New York office. Alferness was most recently a VP of product management at Google, where he spent 13 years. Guerriero was previously director of health, grocery and politics ad verticals at Facebook. Prior to that she spent 10 years at Google in assorted posts, including leading global strategy for the company's programmatic offerings. • GAYATRI BHALLA will oversee Constellation Media, a new full-service digital agency started by data analytics company Infogroup. She has most recently been VP, advanced solutions & product management at Infogroup. Prior to that she was a VP and group director at ZenithOptimedia and also served as chief operating officer at data tech company Catalist. • ERIC STEELE was named group creative director at Translation. He was previously creative director at 72andSunny New York. Prior to that he was creative director at Wieden + Kennedy New York. • MICHAEL KAUSHANSKY was promoted to president of Havas Group's customer relationship data management unit Havas Helia, North America. He will continue as executive VP and chief data officer at Havas North America. He joined Havas Media as executive VP and chief analytics officer in 2011.   Events     News Technology Summit September 26-27, 2017 | Atlanta Airport Marriott, GA Learn More Streaming Technology Leadership Summit October 16-17, 2017 | The Stewart Hotel, NYC Learn More NYC Television Week October 16-19, 2017 | NYC Learn More B&C Hall Of Fame October 16 | Grand Hyatt Hotel, NYC Learn More VR 2020 Summit October 17 | The Stewart Hotel, NYC Learn More Advanced Advertising October 18 | Sheraton Times Square, NYC Learn More NextTV Summit New York City October 18 | Sheraton Times Square, NYC Learn More Hispanic Television Summit October 19 | Sheraton Times Square, NYC Learn More TV Data Summit October 19 | Sheraton Times Square, NYC Learn More more events »   Jobs     Network Technical Support Specialist / Equipment (HBITS 4644) Advanced Technology Solutions, Inc – Albany, NY, US   Jr. Media Planner Zimmerman Advertising – Fort Lauderdale, FL, US   Director of Development Tastemade – New York, NY, US   Project Manager (VOD/OTT - Television/CableTV) Ubique Systems Inc. – Plainview, NY, US   more jobs » News Blogs Events People TV Careers   Advertise Contact Us Send this to a friend       ©2017 NewBay Media, LLC

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