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Thursday
Jan242019

Marketing Spend

  • Declining TV viewership (with ~20% of the U.S. population expected to drop access to pay TV by 2022) renders traditional TV ads less effective, driving a higher allocation towards more cost effective national campaigns which also supports an increasing dependency on national discount promotions.
  • Increasing allocations towards relatively cheap forms of social media marketing and a decrease in McDonald’s local ad requirement explains the decline in 2018 net marketing spend.
  • It remains to be seen how this decline in total net marketing spend will affect industry traffic. 

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