According to Bloomberg, McDonald’s is testing ads from other brands on its restaurant menu screens as it seeks new revenue opportunities.

This would bring yet another retail media network to Canada, increasing competition for players such as Best Buy Ads Canada and others pitching their offerings to media buyers and brands.

The test is being conducted on drive-thru digital boards and in-store self-service kiosks at several U.S. locations. With more than 13,700 restaurants nationwide, the initiative could create a new revenue stream for the company.

Is retail media ready for another competitor?

According to eMarketer, retail media ad spending in Canada is projected to reach C$3.7 billion in 2025—accounting for 20% of all digital ad spending—proving there is massive revenue at stake as the market becomes increasingly crowded.

Is there a benefit for media buyers?

Yes, Customers waiting in a drive-thru line or standing at a self-serve kiosk are a captive audience. The digital menu screens tend to offer high-impact, unskippable viewability compared to easily scrolled mobile or desktop display ads.  Brands will be able to position their messaging at the exact moment a consumer has their wallet out.

The move comes as the company reported a 1.3 per cent increase in global comparable sales for the second quarter ended June 30.

It is probably safe to bet that Will Tariq Hassan, Wendy's new Chief Marketing will be keeping a close eye on the progress of this pilot program.