McDonald's picks IPG's Huge for digital design, UX

Dive Brief:

McDonald’s conducted a review for its global digital design and user experience business and Interpublic Group’s Huge won over Accenture Interactive’s Fjord, per a report from Adweek. Huge will be opening its first Chicago office to handle the McDonald’s business.
The partnership is part of a larger overhaul of McDonald’s agency relationships that has also included putting all of its creative marketing under We Are Unlimited, a dedicated Omnicom firm for the QSR giant. Additionally, the chain put Publicis.Sapient and Capgemini in charge of its digital innovation initiative.
McDonald’s spent around $786 million on paid media in the U.S. last year and $196 million in Q1 2017, according to Kantar Media.

Dive Insight:

McDonald's is in the midst of a significant push to upgrade its use of digital technology, both in-store and online, in recognition of the need for leading-edge digital experiences to appeal to today's tech-savvy consumers. After years of sluggish sales, the chain delivered a stronger-than-expected performance during Q2, in part because of the launch of customizable Signature Crafted burgers and chicken sandwiches. Pairing the more upscale sandwiches with a stronger digital experience could help the chain drive up sales even further.

It's interesting that McDonald's is sticking with a traditional agency model for its digital user experience given how the number of consultancies moving into the marketing and advertising world and taking business from traditional agencies has been receiving a lot of media coverage this year.

IPG’s Huge went head-to-head with Accenture Interactive’s design and innovation division in a review and came out on top, and McDonald’s digital innovation push went to Publicis.Sapient and Capgemini over Accenture and HCL.

The digital innovation deal was announced around a month ago and includes upgrading the chain's technology, adding kiosks that allow digital ordering in its restaurants and launching a new mobile app and mobile payment options. As part of the deal, around 100 of McDonald’s tech staff will begin working for Capgemini in a multi-year agreement.