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MCDONALD’S VIRTUAL COINS – FROM LAUNCH TO EFFECTIVE PLATFORM

DDB COPENHAGEN, Copenhagen / MCDONALD'S / 2014

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The case makes reference to a launch in November 2011, which serves only as the base period for the first burst.

How do you engage an advertising-cynical teenage generation in a low-involvement category - driving both brand affinity and traffic to stores at a significantly lower cost? And how do you sustain momentum in the long-term?

Back in 2011 McDonald’s Denmark introduced a new virtual currency – so called ”Virtual Coins” – and made it available across media platforms in the form of uniquely designed McDonald’s QR codes and sound codes. Consumers could scan the “Coins” via a special McDonald’s Smartphone App and exchange them for free food at McDonald’s.

Within weeks the app became the fastest ever downloaded app in Denmark and is as of today downloaded more than 393,000 times. This corresponds to roughly 8% of the Danish population having downloaded the app. Since then, McDonald's has placed millions of virtual Coins across the country, encouraging the target group to go hunting – transforming a successful launch into a endurable engagement platform for the Danish youth.

This is a story of how McDonald’s managed to consistently drive down the Cost per Guest Count to a mere 5.5 DKK – which is 4 to 6 times lower compared to campaign benchmarks in other categories within the McDonald’s business, and a reduction of 21% compared to previous tactical communication in the same category . The platform drove add-on sales of between 12.35 and 19.28 Danish Kroners (1,66€-2,58€) each time a guest redeemed virtual Coins in a McDonald’s restaurant.

The effectiveness of the platform was driven by creative gamification ideas, which were continuously adapted to consumer behaviour. As a result Paid media effort was reduced from a 100% to 12,9% - and the platform is now primarily based on Owned and Earned media.

Overall, McDonald’s brand favourability amongst teenagers, 15-19 year-olds, has increased by 12% and the brand’s market share within this target group within the QSR-category has increased by a staggering 21%.

Today, “Virtual Coins” is endorsed by McDonald’s Global as a Best Practice in the McDonald’s system.

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