Day 300 - 14 Nov 96 - Page 20
1 be the primary vehicle used to communicate the McDonald's
2 message. In 1980 prime time and sports accounted for 93
3 percent of McDonald's total adult national advertising
4 spending, and obviously, that would, it is just that... I
5 do not know whether anyone is going to rely on the how much
6 McDonald's spend on adults versus children point, but
7 obviously, if you are spending all your money on prime time
8 television, then in terms of the number of advertisements
9 you are going to get for that amount of money there will
10 not be that many.
11
12 On page 409, you see that the national advertising
13 expenditure for advertising to children on television by
14 McDonald's was $22,000,865 in 1990, and $22,227,000 in
15 1989, which were the two years that we are mainly concerned
16 with. So that is a massive advertising budget for
17 targeting children with endless advertisements trying to
18 persuade them to come and eat at McDonald's, or enjoy the
19 fun experience of McDonald's. That was just for
20 television.
21
22 I think this is the last. In tab 20, page 414, this is the
23 1991 OPNAD Annual Report. This is the Chairman's letter.
24 In the third paragraph, it says: "The future is going to
25 demand more from us. Customers are saying they will
26 continue to come to us but we need to bring back the level
27 of service they want." I mean, this is really a nutrition
28 point.
29
30 The fourth line up from the bottom, it says "The additional
31 visits are out there for us to take. We can get more from
32 our current customers. We can get more from those heavy
33 hamburger quick service restaurant users out there. Some
34 already are our customers pretty exclusively, we share
35 others with our competitors and we..."-----
36
37 MR. JUSTICE BELL: Just where are you now? I have only
38 managed to just turn it up. Whereabouts in the Chairman's
39 letter?
40
41 MS. STEEL: The third paragraph. "... and we can get some from
42 those who have not been our customers recently. When we
43 take the visits, we will grow our business and become more
44 successful and profitable."
45
46 So it is all about increasing the number of customer
47 visits. The figures that I gave a moment ago were the
48 national advertising expenditure figures for 1989 and 1990
49 in the USA for television, just television. In tab 21,
50 there is the annual dollars for local spot advertising,
51 which says that in 1989 there was a further $20,814,857
52 spent on local spot advertising, and in 1990 -- this was
53 just for children -- $19,909,253 spent on children's local
54 spot advertising.
55
56 MR. JUSTICE BELL: So you say they have got to be added, do
57 you, to the national television?
58
59 MS. STEEL: Yes. No doubt there are other figures as well, but
60 that is like the minimum. That does not include things
