McDonald's Australia puts M&C Saatchi on account with DDB

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SYDNEY -- McDonald's Australia has appointed as its second agency the Australian office of London's M&C Saatchi, ending DDB's exclusive 26-year hold on the lucrative and high-profile $50m-plus account.

DDB retains all McDonald's media planning and buying and, for the time being, other promotional work. Also pitching were McCarthy Omon Spencer and Foster Nunn Loveder of Sydney.

M&C's first task is a $7m promotional project to break early next year. About 60% of McDonald's total media budget is pumped through promotional activities, making the appointment potentially M&C Sydney's biggest coup since winning a major share of the $80m Qantas business a year ago. McDonald's has 585 stores nationally and plans to add around 200 more before 2000.

Andrew Hipsley, McDonald's senior vice president and director of marketing, says the appointment was "just the beginning...We'll see how they handle a national, full-scale promotion and then decide about giving them our entire promotional account. We're very impressed with the creative standard of M&C's presentation, as well as their track record."

Simon Corah, M&C's CEO, says the win tops off a year in which the agency has added about $35m in billings in addition to British Airways and Qantas.

Copyright November 1996, Crain Communications Inc.

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