McDonald’s is adding third-party advertising to drive-thru menu boards at hundreds of company-owned locations across the United States.
The company has piloted the program at 450 locations in recent weeks. It has not yet expanded to McDonald’s nearly 14,000 franchised U.S. locations.
McDonald’s estimates it could generate $1 billion in revenue by selling advertising space on its menu boards.
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“It’s an opportunity to generate revenue for the system with little in the way of additional cost, no operational complexity and no disruption to our customer experience,” Morgan Flatley, McDonald’s global chief marketing officer, said during an investor presentation last week. “You've seen the power and potency of our marketing model. When more customers choose us, we have to meet them with great food, speed, convenience and an experience that feels worth it, and we will.”
McDonald's said that pilots are something it has routinely done, and the menu board pilot at some company-owned locations is "exploring ways to share post-purchase content that customers may find helpful, relevant, or interesting, while ensuring the McDonald's experience remains at the center of every visit."
McDonald’s move comes as major companies such as Amazon and Walmart expand their advertising businesses. In 2024, Walmart announced plans to acquire TV maker Vizio for $2.3 billion, a deal aimed at helping advertisers better reach Walmart customers.
“Commerce media is one of the fastest-growing areas in advertising and is expected to reach more than $100 billion in the U.S. alone by 2028,” Flatley said.
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McDonald’s has not disclosed what types of third-party advertisements will appear on its menu boards. Gizmodo reported that ads from Geico are among those that have already appeared on some displays.
