Audi Goes On The Offensive Increases 2009 Advertising Budget Up To 20%

The biggest names in the movie industry arrived in fitting style last night for the 81st Academy Awards ceremony: A fleet of 40 white Audi Q7 TDI Clean Diesel cars chauffeured the stars to the red carpet in front of the Kodak Theater in Los Angeles. With its presence at the Oscars, Audi supports yet another major event as part of a major US marketing initiative. The German premium brand already presented the TV transmission of the inauguration of President Barack Obama and launched a major commercial during the Super Bowl - the annual sports event with the most TV viewers in the US.

"Thanks to new models such as the A4 and top models such as the Audi R8, Audi in the US reached the highest brand awareness and best image in its history last year. In order now to further gain market share, we are increasing our marketing budget for the USA," said Peter Schwarzenbauer, Member of the Board of Management for Marketing and Sales of AUDI AG. A full 15 to 20 percent more is to be invested in the brand this year in order to transform this crisis into an opportunity. "While others are hitting the brakes, we continue our extensive marketing initiative," said Schwarzenbauer. "Behaving counter-cyclical will further strengthen us in these times." This also explains how Audi was able to further expand its market share during January 2009 when compared with its competitors (from 6,7% to 7,2% of the Import High Group).

Audi also accelerated its efforts last week in Los Angeles. Starting last Tuesday, white Audi Q7 TDI Clean Diesel cars featuring clean diesel technology began transporting stars like Michael Douglas, Debra Messing, Angela Bassett, Sheryl Crow, Gwen Stefani, Marisa Tomei, Kristin Davis and Kate Winslet. The entire fleet of 40 Audi Q7 cars stood at the ready last night to chauffeur the celebrities to the red carpet at the Kodak Theater, where the 81st Academy Awards ceremony was held.

The presence at the Oscars of the brand with the four rings is only the latest step in the company's marketing campaign in the USA. Audi's 2009 commercial during the Super Bowl, for example, was the second time that the company advertised during that major American sporting event. This event offers high impact: both 60-second commercials were seen by an audience of about one billion viewers who tune into the football spectacular each year.

When Barack Obama was inaugurated as president on January 20, 2009, Audi acted as a partner to the United States' three biggest TV networks - ABC, CBS and NBC - to enable them to broadcast this historic moment with almost no commercial breaks. This was the first time a cooperation with the media of this type was struck - and Audi reached out to more than 19 million viewers on TV that day. For the Internet broadcast of the inauguration, Audi was even the exclusive sponsor. In addition, an eight-page advertisement placed in major newspapers including USA Today, The Wall Street Journal, The Washington Post and The Boston Globe reached more than 8.6 million readers.

2009 BMW 7-Series USA Press Launch Photo Gallery

2009 BMW 7-Series European Press Launch Photo Gallery

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steve27t - 2/23/2009 3:56:11 PM

+3 Boost

Americans are too badge concious ??? Tecknik, if this is true why do they buy Lexus? The truth is Europeans are more badge concious and they buy very few Lexus as a result. They know a tarted up Toyota when they see one, whereas Audi has a bit of history and is quality marque. BMW, Merc and Audi are all great cars, they have different appeal, but Audi is very smart upping their advertising at this time, it will pay dividends in the next few years.

Agent009 - 2/23/2009 4:11:23 PM

-1 Boost

steve27t- I think Audi and Hyundai are both on the right track. They are pouncing with advertising dollars when everyone else is cutting back. Brand awareness is half the battle, and these two are increasing it in droves right now. This might be the best money spent in 2009 for both of these companies.

LexSucks - 2/23/2009 4:25:01 PM

-4 Boost

Teknik,

Your views on BMWs are retarded, stupid and completely false. You sound like some bitter lexus Fanboy upset because Lexus cannot build cars that Europeans desire.

As for Audi? They will succeed in the U.S. Reason? They appear to be following the Lexus Model. And that would be to build cars that are cheap to make, don’t perform, yet charge as much as the competing cars that actually do perform.

This is great for super-high profit margins. But In order for that to work, you have to spend multi-millions of dollars on advertising designed to trick people into believing that their cars are superior (seems like they already started this). In reality the cars are not superior but Americans will believe whatever is said on TV (gullible bunch us Americans). What's even sadder is that Americans will argue claiming superiority based off information gathered from a commercial. That’s why you will only find Lexus Fanatics In America. The rest of the world can see right through that crap. Americans can't, hence the success of Lexus only in America. We're dumb and clueless when it comes to cars.

AlexTx - 2/23/2009 6:17:45 PM

+1 Boost

Steve: I kinda agree with Teknik on this one.
I think he is harsh on BMW which makes great cars, but Americans in general when it comes to luxury cars are brand concious.
Lexus marketing has done a great job with passing Lexus as a Luxury car, which they are now, but not always.
A lot of people here will buy a car for what is on the hood or the grill, and more than enough, Audi was passed. One of the reason for that is that Audis were not expensive enough. How many times a client did not buy an Audi from me because it was not expensive enough!!!

E36er - 2/24/2009 12:41:16 AM

-1 Boost

As much as I like Audi I have to agree with you. Audi still doesn't know when to stop reaching for the VW parts bin on major components such as their DSG. Why pay 50K for a TT when it's essentially running on the same guts as a GTI.

IamEvilHomer - 2/24/2009 2:49:32 AM

0 Boost

a 20% increase for Audi US advertising is probably another 50 cents

AlexTx - 2/24/2009 10:30:46 AM

+3 Boost

E36: Apparently you have not driven either.
Did you know that the TT has an Aluminum space frame?
Yeah... that's right.... it is several hundred pounds less than the GTi and much quicker. Except the engine and tranny, they don't share anything else.
You'd be surprised to how little Audi and VW share together contrary to popular beliefs... This is not the 90's anymore.
Oh at $50k.. you don't get a TT... you get a TT-S.

downtoearth - 2/23/2009 7:19:54 PM

-2 Boost

— LexSucks:

> In reality the cars are not superior but Americans will believe
> whatever is said on TV (gullible bunch us Americans). What's even
> sadder is that Americans will argue claiming superiority based off
> information gathered from a commercial.

A list of 79 awards collected by the Lexus LS:

http://en.wikipedia.org/wiki/Lexus_LS_awards_list

LexSucks - 2/23/2009 9:55:22 PM

+2 Boost

Now if only lexus could manage to get awards like that for the ES?

JustaCar - 2/23/2009 8:28:57 PM

+3 Boost

LexSucks,

I agree with you about Lexus being a success in the US because of clever marketing. But you are totally off base with your comments about Audi. You said "We're dumb and clueless when it comes to cars". Your comments about Audi prove just that you are dumb and clueless when it comes to cars. Just look at Audi's history and their success around the world including in Germany, and maybe you'll realize that equating Audi to Lexus is off base. And to say that Audi builds cars that are cheap to make and don't perform...what decade are you still living in?

LexSucks - 2/23/2009 9:47:55 PM

-1 Boost

I used to own an A4. And back then (1998) Audi actually competed in terms of price and performance. Back then you had the 1.8t which easily competed with any BMW 323, and then there was the 190hp 30v v6 A4. The 30v A4 had more horsepower than the competing BMW 328! And finally in 2000 Audi released the Bi-Turbo V6 A4. The 2000-2002 Audi B6 S4 outperformed the E36 M3 that was out at the time.

Every Audi that I just mentioned in the last paragraph costs less than the competing BMW while offering the same if not better performance. You cannot say that about any of the current Audis.

LexSucks - 2/23/2009 9:49:14 PM

+2 Boost

As a prior Audi Owner I know all about their history (which is richer than BMW btw). I know all about the Auto-Union race-cars from the 30’s and how Audi was formed when four of the top German car builders (at the time) merged. Hence the four rings.

The Audi that I see now has shifted all excitement away from any of the normal models. All while charging that same premium. And the new Supercharged B8 S4? Since when has Audi released an “S4” model without those mean looking extended wheel arches? All S4’s before the current model had them, not the new one. The 2010 S4 should really be the A4 since it will only offer BMW 335 levels of quality and performance. I’m still trying to figure out the significance of the “S” badge on the new S4?

LexSucks - 2/23/2009 9:51:38 PM

-1 Boost

Now quality? The New B8 A4’s interior seems to be made of lower rent plastics than the B7’s. There are other items were Audi has clearly skimped with the new model like not having dual exhaust for the 2.0t. The B7 had them. I could go on but why bother?

That is why I’m so P’d off at Audi. I used to be a Fan but they have done nothing to warrant my interest. The only Audi’s worth looking at are the ones that cost over $55k. The Audi models that cost less than $55k offer little more excitement than say a Lexus. Audis do make better cars than Lexus (don’t get it twisted). But Audi currently doesn’t have anything that warrants my interest in the $40k-$50K range.

AlexTx - 2/24/2009 10:28:29 AM

+3 Boost

Hmm.... Lexsucks.... apparently you don't know your Audi history that well as the S4 NEVER had flared wheel arches. The RS4 yes, the S4... No.
If Audi wants to be taken seriously in the U.S it had to increase it's prices (although option to option it is still less than it's competition) so people stop comparing the brand to Acura or Volvo and more to BMW and Benz.
The U.S is the only country where you can buy an Audi for less than a Beemer or a Benz... every where else they are the same price if not more.
The new A4 is an incredible car. It has high built quality (unlike what Lex says) and it apparently he hasn't really driven one.
because I drove the IS and the new A4 and the A4 is much more exciting to drive. COupled with Audi Driver Select it is an amazing machine.
For the moment Audi's main goal is not to be #1 in the States... that has been pushed back.
Profits and recognition is what they are now looking for and guess what... it is getting there..

LexSucks - 2/24/2009 12:12:43 PM

-2 Boost

"Hmm.... Lexsucks.... apparently you don't know your Audi history that well as the S4 NEVER had flared wheel arches. The RS4 yes, the S4... No"

I thought that the S4's fenders were "mildly" flared while the RS4's were "aggressively" flared. I could be wrong. Either way the significance of the "S" has diminished.

As for the A4’s interior? I haven’t driven one but I have sat inside and examined the interior for an extended amount of time. The materials look cheaper than before. I am not alone with that assessment. And then there are things missing like climate-controlled center compartment and climate controlled cup-holders. It no big deal but the BMW 3 series has them. Audi also took away the sweet dual-exhaust setup from the 2.0t. Any idea why they would do this? They took away a very aesthetically pleasing two-exhaust setup (complete with polished/Rolled Tips) and replaced it with a single sided exhaust with tips that look like thin metal tubing cut at an angle (complete with sharp edges). I can see the cost cutting. It’s not my fault that certain people cannot.

There’s a new 2.0t (stripper) parked in my job’s parking lot. The car looks like some sort of normal generic vehicle IMO. Not the $45k+ car that Audi thinks it is. There’s a prior year model in the same lot and that car looks much more polished.

AlexTx - 2/24/2009 6:09:05 PM

+2 Boost

Seriously??
Do you really care about a climate controlled cup holder and center console?
Get the Q5.. it actually has heated and cooled cup holders. cool stuff, but just a gimmick to me.
How about a 3 Zone climate control on the A4 that the 3 series does not offer; not just rear vents, but actual temperature control for the rear passenger.
I think this might be a whole lot more important depending where you live.
I actually like the exhaust on one side; yes Audi got rid of the shinny tips, but that's o.k.
BMW don't have them either and I don't hear you bitch about it.
I'd trade shinny tips for a much rewarding drivign experience.... It's not like i can see the tips anyways..

LexSucks - 2/24/2009 9:22:07 PM

-1 Boost

We're just going to have to agree to disagree. Dude I'm not going to sit here and write a dissertation about how Audi's are overpriced cars. I made points about Audi being competitive in the past but not now. Yet you choose not to respond to that? Whatever the case may be the A4 isn't what it used to be IMO.

The A4 was nice enough for me for to purchase one in 1998. I’d be crazy to get an A4 now after looking at the competition. But whatever floats your boat I guess.

AlexTx - 2/25/2009 11:45:37 AM

+1 Boost

Hmmm... I sold Audis for over 8 years...
believe me... they are still very much so competitive.
Has the price increased? yes. Are they over priced? Far from it.Not when you consider what comes standard on the car, how much it costs to build one and what they offer.

LexSucks - 2/25/2009 6:13:45 PM

0 Boost

Audi's are overpriced. There's no way around it. Just because you've sold them for 8 years doesn't mean that they are not overpriced. Case and point. A 2.0t cost about $42,000 typically equipped. The price can go up to $48,000. Almost $50k for a 4-cylinder 200hp car? And that’s what you call “competitive”. LOL!! Name another 200hp 4-Cylinder car that cost over $45K? The cars that do cost that amount have over 200hp and finished exhaust tips :-)

And then there’s the A4 3.2? Now that’s an overpriced car. An A4 3.2 can cost about $48,000 typically equipped and can go up to $56,000. All that money for the weakest performer in its class? The A4’s have the weakest engines, and the worse performance out of all the cars it competes against. What is sad is that it’s among the most expensive cars in its class.

I’ve looked at what you get in the A4. And there isn’t anything that Audi offers that you cannot get from the competition. The Audi A4 doesn’t offer anything over the competition. And when you look at things like HP and performance, The Audi A4 actually offers less. All this for the same price of say a BMW 335. And we all know what a 335 will do to an Audi A4. It will destroy the Audi. The A4 isn’t even in the same ballpark performance wise, just price wise.

Agent009 - 2/24/2009 8:52:02 AM

0 Boost

The same could have been said about Lexus in the early 90's