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McDONALD'S TO CUT OUT SPOT ADVERTISING
Published December 14, 1994
According to INSIDE MEDIA's Chuck Ross & Laura Rich, McDonald's Corp., "in a major blow to local TV stations," is taking all of its money out of spot broadcast for '95. The company spent "well over" $100M on spot TV in '94. One McDonald's spokesperson: "We're shifting to a substantially national focus by moving the majority of our TV spot media spending to national network, cable and syndication. We're going to be getting more bang for our bucks." Along with the networks, Leo Burnett, which does McDonald's national buying, "is the big winner in the change." The shift is also a "significant financial blow to the two dozen or so agencies that the fast-food giant uses on a local basis." The move by category leader McDonald's could have "serious repercussions for stations, reps and agencies if other fast-food companies follow" (COWLES BUSINESS MEDIA, 12/13). MCDELIVERY: McDonald's VP Paul Facella said the initial success of the free delivery experiment in New York will lead the company to continue the service. And if numbers "continue their upward trend," the service might be expanded to other cities (Alan Wax, N.Y. NEWSDAY, 12/14).