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How McDonald’s and Omnicom Plan to Make Zero-Margin, Performance-Related Pay a Recipe for Success
By: The Drum
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A zero margin, performance-related pay model might seem more beneficial for McDonald’s than Omnicom but both advertiser and agency are confident it’s the best way to balance the small agency intimacy with the cost efficiency and breadth of a big agency, write Natalie Mortimer and Seb Joseph.

It’s a model its creators – McDonald’s first ever chief marketing officer Deborah Wahl and DDB North America chief executive Wendy Clark - refer to as the “agency of the present’. Present, not future, because of the urgency behind the advertiser’s search for a model that can help it view marketing in its entirety amidst a wider turnaround of the global restaurant.

While the ambitions of both McDonald’s and Omnicom has excited many observers, their promises of ‘breaking down silos’ and clearer consistency throughout its advertising bear similarities to those bygone integrated agencies that struggled to offer all-round expertise. Bob Hoffman, a former advertising executive and author of the Ad Contrarian blog, went so far as to say it is destined to fail on account of the agency having no control over how its activity is measured, given no national advertising plan for the restaurant ever gets approved without the franchisees’ backing.


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This article was published by The Drum. A link to the original appears at the end of this post. www.thedrum.com
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