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McTV Shows Advertising Potential

By: Dwayne W. Waite Jr.

As the economy continues to struggle, brands are looking at creative ways to improve their bottom line. Of course, this includes diversifying product offerings, expanding into a new markets, or penetrating further into a certain segment. McDonald's, a brand that is known for its ability to weather storms, is looking to dive into in-store television. McDonald's will be adding an in-store channel, starting with several California spots in the next coming months, to eventually reach 800 locations. If it is successful, McTV will be launched nationwide.

Now, this isn't McTV for just the little ones. According to Investor Place, McDonald's has teamed up with BBC America and a California ABC news affiliate so it can provide local news, youth sports, and other entertainment. McTV is just another component in the rebranding of McDonald's to transform it into a place where people want to hang out a bit longer instead of picking up food and leaving.

This concept doesn't make the investors happy just because it could potentially increase sales. No, they are excited about the advertising implications too. McDonald's now has close to 33,000 locations in over 100 countries, so the advertising revenue potential is staggering. The same article gave Walmart TV as the example; the house that Sam built can reach close to 127 million shoppers a week with about 150 million ad impressions from sponsors. We should also point out that airlines like Delta, US Airlines, and Cathay Pacific all also have their own in-store (or in-flight) networks where brands can capitalize on a captive audience.

It is still uncertain how much owned content McTV will produce and how much content BBC America and ABC will provide. This should be interesting to watch. With consumers complaining about advertising being everywhere, the FTC looking to fine any brand they can, and marketing "experts" saying that consumers now have the power while then contradicting themselves and saying that your own content "is king," McDonald's and its management will have the magnifying glass centered over their activities.

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About the Author

Dwayne W. Waite Jr. is partner and principal at JDW: The Charlotte Agency, a marketing and advertising shop in Charlotte, NC. He enjoys consumer behavior, economics, and football.

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