McDonald's adds espresso as ads taunt Starbucks

ByABC News
December 14, 2008, 9:48 PM

— -- McDonald's is now serving espresso in Starbucks' home Seattle market and has billboards there with pointed messages, such as: "Four bucks is dumb." The point, of course, is that what folks pay for some espresso or latte drinks at Starbucks. A small McDonald's latte is about $1.99.

It's a "lighthearted" local promotion that reflects McDonald's "fun approach to our brand," McDonald's spokeswoman Danya Proud says.

But Starbucks isn't biting and it won't respond to the ads, spokeswoman Deb Trevino says. Yet, she does point out that some of the java giant's drinks are similarly priced to McDonald's. For instance, a cup of brewed coffee costs about the same at Starbucks and McDonald's in the Seattle market.

"For us, the bottom line is not price," Trevino says. "Customers come to us for the experience."

Pepsi glass is half-full

Pepsi-Cola's new marketing will play up optimism. Research found that target buyers so-called Millennials born 1980 to 1990 are "confident" about 2009, and 95% agree it's important "to maintain a positive outlook on life."

A redesigned logo on cans showing up in stores now looks like a smile. Ads from TBWA/Chiat/Day Los Angeles, which unseated BBDO New York as Pepsi's agency, may begin in January. Pepsi also will be a big player in February's Super Bowl, where it paid a premium to keep rival Coca-Cola ads out of the first half.

Drugmakers prescribe ad rules

The catchphrase, "I'm not a doctor, but I play one on TV," may soon show up in prescription drug ads. Among tightened voluntary guidelines unveiled by drugmakers last week is one calling for ads that star actors "in the roles of health care professionals" to disclose the folks are actors.

Other Pharmaceutical Research and Manufacturers of America (PhRMA) ad rule revisions:

Be sure celebrity endorsers support the drug.

Disclose whether health care pros in ads got something of value to pitch the drug.

Put ads "inappropriate" for kids in media where 90% of the audience is age 18 or older.