McDonald's Tries Ads on Menu Screens as Part of Revamp Efforts
McDonald's is testing an innovative way to increase revenue by turning its digital menu screens into advertising platforms. The fast-food chain has been experimenting with placing advertisements from other brands on menu boards at select company-owned US restaurants, according to a Bloomberg report.
The trial involves displaying ads after customers have completed their orders, essentially repurposing the waiting time between checkout and pickup as potential ad inventory. This move aims to tap into the existing network of physical real estate, millions of daily customer interactions, and years of digital investment in its restaurants.
McDonald's already has a significant presence with over 13,700 outlets in the US, serving about 26 million people each day and reaching nearly 90% of the country's population annually. The potential for a new revenue stream beyond traditional sales is substantial, given that this experiment leverages its existing infrastructure without requiring customers to buy more than their meal.
This development comes as McDonald's works to revitalize its US business, which has faced challenges from higher costs and weaker traffic. The company has been focusing on value offerings and upgrading restaurants while improving food and service. Its digital menu boards, installed over a decade ago across the US network, provide a ready-made foundation for this advertising venture.
The concept of turning customer touchpoints into advertising businesses is not new; retailers have successfully developed such operations around physical stores and digital platforms. This trial represents McDonald's exploration of whether its vast restaurant network can become an advertising platform as well.