Car makers wasting millions on TV ads-Looks like what we've predicting is now coming true!

CAR makers may be wasting millions of dollars plunging the bulk of their advertising budgets into television, with a new survey claiming magazines, newspapers and the internet are more valued by car buyers for the information they deliver.

The survey by AC Nielsen for Time Inc tracked key influences on car buyers for the six months in the lead-up to a car purchase, charting which messages were most influential at each stage of the process up to the week of purchase.

With car makers spending an estimated $615 million a year on advertising -- 51 per cent of that on TV -- observers say the implications for the car industry are huge.

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Full article here

rack - 12/22/2005 9:01:02 PM

+1 Boost

I think tv advertising goes a lot further than all other media, but I think the information sits are more of a sub conscious level. Brand itentity etc.

Morehouse - 12/23/2005 2:15:15 AM

+1 Boost

There needs to be a visual advertising medium that can get the consumer excited about all new vehicles and significant changes to a brand. The vehicle manufacturing dollar needs to be allocated a bit differently in these days and times. The savvy TV viewer is more choosy about the shows they watch and the number of non-time shifting consumers is dwindling swiftly, meaning TV ads are not viewed as often as they used to be. The demo of those sitting through all 60 minutes of a show with 44 minutes of content is beginning to look a lot like the Cadillac demo-skewing more toward the 50+ crowd. These are not the people, in general, that most vehicle manufactureres are looking for. Families (the heart of the vehicle buying public) are spending less and less time in front of a TV (no time).

TiVo has become almost as generic a name a Kleenex and Bandaid. And Google is both a noun (the name of the Internet search engine) and a verb (what you do with the search engine, e.g., Google GM). Those two statements are telling about the ad industry. Have you seen the price of Goole stock lately? If not, Google it. You'll be amazed that the recent market value of Google now gives it more market value than most of the Dow Industrials--and this time it does not look like a fad. Internet companies are thinking much more strategically and long term. They are actually making money now!

Ad dollars should be moving more from TV (except as noted above) to the Internet (#1), print advertising (including newspapers, magazines, etc.), and then radio. That's where the heart of the demo that manufacturers are looking for live.

tarponsprings - 12/23/2005 7:10:47 AM

+1 Boost

The TV landscape is much too cluttered. The average American is bombarded by thousands of advertising impressions daily. Some networks/local stations even run competing car company spots back to back. Manufacturers should spend more money on customer retention, via direct mail/e-mail, loyalty rewards, etc. Even the best spots will not convince a BMW, Toyota, Honda, etc. owner to even look at a Buick Lucerne, much less buy one.

Sachsi2 - 12/24/2005 3:38:23 PM

+1 Boost

Thought I'd throw in my 2 cents here: 
 
If I hear on TV something like "the Mercedes 230 is a greats sports sedan" that will get an "oh well" out of me. If they put out an ad saying "Streeetcorner Mercedes has the 230 for $299/month lease, no cap reduction" I'd see that as well-spent ad dollars if I have my mind already set on the 230. 
If I log into a website like this one or read posts in newsroups about how fantastic the 230 is, that may actually make me drive down to the dealer and try one. After having tried one, my own impressions and all the info gathered from various places on the internet are the only things that will make the distinction between the thumbs up or down. 
There's different audiences out there but when it comes down to informed consumers that hang around websites like this, there are probably only 2 things (aside from impulse) that can push them to buy a vehicle: personal perception and personal research (the latter hardly ever comes from tv). 
 
I have myself not bought anything over $100 that I have not previously read about in more than a few professional and owner reviews ... but i'm an informed geek. Despite the fact that I have bought 5 new cars for myself and my family in the last 5 years, being an informed buyer probably allowed them to make less profit out of all of those vehicles than they would from a single buyer that walked into a dealership and had to have the 745 right then and there and paid cash. 
 
There's more than one type of audience and they have to advertise to all of them, geeks included. 
 
Merry Christmas to you all!