McDonald’s Tests Selling Digital Menu Board Ad Space to Other Brands

McDonald's is conducting an experiment that involves incorporating advertisements from other companies onto its digital menu boards in drive-thrus and physical restaurants, according to Bloomberg. These ads appear following customers' order placement and can be viewed while waiting for their meals. A company spokesperson explained that this pilot program aims to share post-purchase content that customers might find helpful, relevant, or interesting, all while maintaining the central role of the McDonald's experience.

Retailers are increasingly becoming "media environments" where brands pay to influence consumers' decisions at the moment of purchase. Retail media networks, which leverage data and insights, are becoming more central to advertising strategies. For instance, Dollar General has expanded its AI-enabled in-store audio network that connects messaging to point-of-sale data and local store conditions.

Retailers like CVS are also harnessing first-party data to create a competitive edge through retail media. Despite a slight 0.8% increase in comparable sales in the United States during the most recent quarter, McDonald's CEO Chris Kempczinski acknowledged the need to reevaluate their value-driven approach. He stated that the company would no longer compromise on value, and the AI ordering system unveiled in June would be tested at five U.S. locations.