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It has been established that good advertising is key to good sales. OEM’s must agree because ten of them landed on the “100 LEADING NATIONAL ADVERTISERS” as ranked by Ad Age a few days ago(June 2011.) 

A few quick facts:

  • All listed OEM's jumped up in national rank
  • All listed OEM's increased their spend over 2009
  • The majority of OEM’s advertising budgets go to TV
  • The top ten OEM's spent $808+ Million online in 2010


Do you agree with your OEM’s advertising break out?  What stands out to you?

 

**CLICK ON IMAGE TO EXPAND VIEW**

*Source: http://adage.com/datacenter/datapopup.php?article_id=228228

Tags: Advertising spend, Automotive Marketing, Daymond Decker, Ford Marketing, GM Marketing, OEM Advertising

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Daymond - I am almost shocked that Ford spends 70% of their budget on TV when other articles have stated that Ford spends 40% on Digital... What's with the misinformation?

Ralph – I do not possess your good fortune and have the ear of the every top OEM executive in the industry, you tell me why ;).

 

What I can tell you that there was an article not too long ago published in Bloomberg Businessweek that touted Ford as spending 25% of their marketing on Digital and Social Media.  It might be fair to add that according to J.D. Power, about “9% of spending this year by automakers will be digital, but that will rise to about 12% by 2012.” With these two stats and some fuzzy math I  come up with 37% online ad spend for Ford!

I have an idea, you call Fords CMO Jim Farley and ask him to validate the 40% claim.  

 

In the mean time I will just have to sit back and watch him on YouTube talk about Social Media and the Customer Experience.

 

What's amazing to me is how much GM spends on print -- $655 million, more than 30%.  Hard to imagine they're getting much bang for their buck there.

Interesting that Nissan is making such a a big online push.  I wonder if this is working for them, and how much is co-op with dealers.  Our Austin SEO services company has a dealer client (not Nissan); and there's not much OEM support or coordination for online marketing.

 

Excellent points.  There's no reason to do marketing without ROI, although sometimes it's hard to measure.

 

But social marketing has demonstrated ROI in many cases.  This is particularly true when a new product category, concept or technology (e.g., crossover SUV, Smart Car, Zip Car, ABS, electric car, active steering) is being introduced.

 

Social media marketing gives consumers a chance to discuss the new concept/product/technology and ask questions in an open forum with manufacturers and dealers.  This helps them to get comfortable with all aspects of ownership before making a purchase decision.

 

Daymond thanks for sharing.  Really surprised about GM's spend in print and TV.  They seem to be well outside the range of the others.  Would really like to see the information they are using to drive their decisions.  On the overall spend on TV, I am not surprised.  TV is a major driver on action, including search.

I can only speculate on what drove GM’s financial decision making process in 2010,  but in an effort to be politically correct,  I will refrain.  Did you notice the 74.9% increase in the Chrysler Group overall spend from 2009 to 2010?  

On another note,  and the original purpose of me scraping the data….. of the almost $11.5B total spent in 2010 by the top ten OEM’s,  about  $809 M was allocated to Digital (7%).  Bottom line is that the 7% figure for Digital is off from what most of the industry experts report.  

yes, I saw the Chrysler boost.  The low amount on digital is very surprising.  Any chance that they do not have social spend under pr or something other than advertising? 
It is possible the spend is reported elsewhere, in the chart there is a column called “Estimated Unmeasured”, one can only guess what that represents.
No surprise in these numbers.  When ad agencies and their media buyers get paid on a percentage of the ad spend, TV and publishing in print will continue to win out.  Bigger commissions for the agency if they buy TV or Print.

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