A new McDonald’s advert has been accused of costing $20 million, but the company says it was a mistake.
“We would like to be able to say that it was actually our last ad before we took a leave of absence, but in fact, it was our first ad,” says Michael Meczek, the company’s vice president of global marketing.
The ad, entitled “Home Sweet Home,” is the second McDonald’s to use a $20 ad budget, following a $2.7 million ad for its new Mac & Cheeseburger.
The company had originally said the ad would cost $7 million, as part of a $100 million ad buy, but that was reduced to $8 million in an internal internal investigation.
“I think it was an easy way to get into the budget,” Meczy says.
“The first ad was $8,000.
The second one was $2,700, $3,700.
So the cost was a little bit lower than the first one.”
McDonald’s says it spent $3.2 million on its first ad in 2016, $2 million in 2017 and $1.8 million on the second one.
But Meczik says the ad budget was closer to $7-8 million.
He says that it’s still “a work in progress” but that it appears the company is making progress with its ad spending strategy.
McDonalds spent $1 million on a new version of its popular burger chain’s signature sauce, which it says it can use to make its chicken McNuggets.
McD’s has also paid $500,000 to buy a digital ad for the new Mac, which features a series of animated videos and a voiceover from actress Emma Watson.
The company says the video is based on the new movie The Imitation Game.
McGraw-Hill, which owns the movie rights, says Watson has a “huge, unique voice and we are looking forward to her helping us achieve more.”
McMahon says he expects the ads to be a hit, with many of the McDonald’s fans he’s reached through social media being so impressed with the brand that they are going to be buying more.
He said it’s also been a challenge trying to find the right ad to sell.
“What we’ve done is we’ve hired a lot of creative people, we’ve paid a lot, we have a good budget,” he said.
“But what we have found is that it has not been a great success.”