MCDONALD'S TO ADD 2ND SHOP IN AUSTRALIA;BURNETT, MAIN SHOP NEEDHAM NOT INVITED TO PITCH FOR PROMO WORK

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[sydney] McDonald's Corp. is seeking a second agency in Australia to undertake strategic promotional campaigns rather than use DDB Needham Australia, McDonald's sole agency in that country for 25 years.

The fast-food giant has invited five agencies to pitch for the business, described by the company as "a limited number of selected promotional campaigns."

McDonald's $50 million ad account makes it one of Australia's 10 largest advertisers.

NO WORD ON CONTENDERS

The company declined to name the agencies in contention, but Leo Burnett Connaghan & May said it has not been asked to pitch. Leo Burnett Co. is one of McDonald's biggest international agencies, working for the marketer in the U.S. and 17 other countries.

In the U.S., Chicago-based Burnett made a media buying error earlier this year through incorrect calculations that resulted in McDonald's making a media buy at least $20 million lower than intended. The embarrassed client had to apologize to franchisees.

The Australian move to add a second agency is believed to be at least partly in response to dissatisfaction from McDonald's local franchisees with DDB Needham's current TV ad campaign, which broke several months ago.

FROM MOSCOW TO OUTBACK

TV spots showing street scenes of local people and their daily lives were shot in cinema verite style in five cities including Rome, Moscow and Mexico City, and in the Australian outback.

In Moscow's Red Square, for example, a Russian clowns around dressed up as V.I. Lenin. The only McDonald's branding is the occasional hamburger or bag of french fries that appears in the street scenes or in the corner of the TV screen at the end of spots.

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