Auto advertisers relying more heavily on TV
Automakers spent $1,268 on TV for every car sold
October 25, 2013
During the recession, car sales fell to their lowest annual level in years, and automakers searched desperately for ways to draw buyers back into the showroom.
In terms of advertising, that translated into a greater reliance on the medium manufacturers and dealers have long favored over all others: Television.
A new report from Kantar Media finds that from 2009, at the start of the recession, to 2012, TV’s share of auto ad spending rose by almost 10 percentage points, going from 53.9 percent in 2009 to 63.3 percent in 2012.
At the same time, the percentage of auto budgets dedicated to newspapers, magazines and even new media fell.
“Local media are extremely important for auto,” says Jon Swallen, chief research officer at Kantar Media.
“All dealer spending is local, and manufacturers use local media to tailor lease, APR and rebate offers by market. The diminishment of newspaper and radio audiences has reduced local media options for auto advertisers, driving money to local TV (and web).”
During that same three-year period, newspapers’ share of auto advertising declined by 6.1 percentage points, while magazines were off by 2.9 percentage points.
Online even fell by nearly a point, after years of rising share as auto advertisers, most notably dealers, experimented with newer media.
The report also finds that auto manufacturers and dealers spent an average $1,268 on TV advertising for every car sold last year.
That’s the lowest number since the Great Recession began, reflecting in part the increase in car buying last year.
Car sales were up 14 percent, to 14.5 million. Auto spending was up too, but only by 7 percent.
At the height of the recession, in 2010, car sales declined to under 11 million. Auto advertisers averaged $1,415 on TV advertising for every car they sold that year.
“Over the past seven years, the number of cars sold annually has ranged from a low of 10.4 million to a high of 17 million. That’s a spread of over 60 percent,” notes Swallen.
“During this same period, the ratio of ad spend per car sold has varied by no more than 15 percent. Which demonstrates that auto manufacturers and dealers scale their budgets up or down in lockstep with the sales climate for vehicles. That’s the key point.”
The report does criticize automakers’ tendency to bunch advertising in the same news and sports programming. During the World Series, for example, you’ll see the same ads over and over again for the same cars.
Kantar says that this may be “undercutting the objective of the creative, which is to make them stand out.”
Ben Bradlee, in other people’s words
How the MRC investigates snafus
New York City: TV is suddenly tight
Tell us, what’s your take on Martha Stewart?
For ‘Newsreaders,’ a dash of the absurd
World Series posts new low for opener
KC agency to Royals: We’ve got your back
Cable overnights: ‘Sons’ stays even to last week
NBC comedy block declines on Tuesday
Univision’s ‘Corazon’ tops Hispanic broadcast
Huge Twitter crowd for BET Hip Hop Awards
This month’s new media traffic data
Remembering Ben Bradlee, editor
- Brad Cohn becomes executive creative director at MRY West
- John Pucci rises to CMO and CCO at Hawthorne Direct
- Dave Hadden becomes UX designer at Digital Pulp
- Maura Fritz becomes editorial recruiter at Hearst Magazines
- Joe Weisenthal becomes markets managing editor at Bloomberg.com
- Jennifer Hitzges and Petra Kobayashi join Redbook
- Larry Fitzmaurice, Zara Golden and Khalila Douze join The FADER
- Jessica Hopper becomes editor in chief at The Pitchfork Review
- Mimi Gigoux becomes EVP of human resources at Criteo
- Samantha Glynne becomes VP of branded entertainment at FremantleMedia
This month’s new media traffic data
This week’s cable ratings
This week’s broadcast ratings
This week’s top movies, songs and books
This week’s daypart ratings
This week’s younger viewer ratings
Media buyer job in Syracuse
Assistant media planner/buyer wanted in Austin
Digital media buyer/planner job in Norcross, Georgia
Associate media planner wanted in Chicago
Media buyer job in Medford, Oregon