Does Omnicom’s multi-agency win of McDonald’s advertising business in the US spell the end for niche-platform agencies?
Earlier this year, Omnicom won all of McDonald’s advertising business in the US, worth $1bn. This marked the end of 35-year relationship with Leo Barnett.
The move brings all creative and media together within Omnicom. This includes DDB, the creative agency that has worked with McDonald’s for 45 years and OMD, McDonald’s media agency.
What’s interesting about the deal is that it consolidates expertise from a number of different Omnicom agencies, rather than one.
As Wendy Clark, CEO at DDB Worldwide, North America, commented: “The best and the brightest talent across multiple Omnicom agencies came together over the last four months to create, operationalise and deliver on that brief. The result is a customised agency built with intelligence at the core, to fuel brilliant creative work.”
The win allows Omnicom to pool resources to create a dedicated unit to service McDonald’s. The unit includes all the capabilities McDonald’s requires – speed, efficiency and data-driven, consistent creative across multiple channels. This approach reflects the trend for brands looking for greater cost-efficiency and consistency across traditional and digital marketing.
It’s not just big brands like McDonald’s that hanker for the full-service agency approach. Many brands now see real value in having one agency network partner who can manage every aspect of marketing output.
“Consolidating skills into a data and proposition-led agency is good for clients,” explains Niki Webb, CEO at Specialist – The Content Agency.
“It offers consistency in brand messaging, which is important as consumers move seamlessly between channels. It also means you have one dedicated team providing all-in-one solutions, which can move quickly and cost-effectively.”