Ford, Chrysler cut advertising costs while Toyota and GM boost spending
06/13/2008, 12:14 PM
By paulee
The slowing economy has affected manufacturers in different ways, with most looking to cut costs. The latest such measures were undertaken by Chrysler and Ford, both of which cut U.S. advertising budgets by more than 30 percent in the first quarter of the year. GM and Toyota, meantime, took the opposite approach, boosting their advertising spending in an attempt to sell more products during the tough times.
Chrysler cut its spending by 42 percent while Ford decreased it by 31 percent, according to TNS Media Intelligence data revealed in a Detroit News report. GM increased ad spending by 13 percent and Toyota’s grew by 8.4, mostly on television advertising to build brand awareness. New models, such as the Malibu for GM and Corolla and Matrix for Toyota, had a key in spurring the increases, industry analysts believe.
The new spending figures for each company include $535 million for GM, which remains the second biggest advertiser in the U.S., $291M for Toyota, $292M for Ford and $186M for Chrysler.
Auto sales for the first quarter of 2008 fell at all four automakers, to the tune of 16 percent for Chrysler, 11 percent for GM, 9 percent for Ford and 5.6 percent for Toyota, with an overall industry decrease of 8 percent for the same time period.
06/13, 12:21 PM
posted by:
The Stig
They have to sell Hummers somehow.
06/13, 12:30 PM
posted by:
SickofGarbageMotors
GM would be smart to abandon all advertising for Hummer and even it’s other large utes like the Suburban/Tahoe. Let the potential buyers of those buy what they planned on in the first place, but don’t even bother trying to lure any others as there probably won’t be many takers with todays gas crunch. Spend the ad dollars where they would be most effective. Pickups ads would probably be OK since that segment will never disappear and GM needs to remain aggressive to keep buyers from buying F150’s, RAMS, Tundras and Titans.
Same for yota although they don’t really advertise their large vehicles much anyways. Well maybe the Tundra, but again, that’s just to remain aggressive and not get lost in the shuffle.
06/13, 12:48 PM
posted by:
howsmydriving
“Oh what a feeling.” That slogan really made me buy a lot of Toyotas.
06/13, 1:03 PM
posted by:
johnnycanuck
There hasn’t been a good advertising campaign since Ricardo Montalban introduced the world to rich Corinthian leather. Whatever happened to Corinthia? I hear it was nice in the summer. Lots of cows, though.
06/13, 2:07 PM
posted by:
shaver
I never understanfd why they did not use Tattoo in those commercials. Thee plane, thee plane.
06/13, 3:30 PM
posted by:
tzu13
So, in order to save money now, they’re going to reduce the chances that people will see their product on TV and then (possibly) be swayed to come out and buy one?
06/13, 4:41 PM
posted by:
bolex
good call. Ford and Chrysler commercials suck so bad it makes me NOT wanna buy them. the ‘Ford Challenge’ trade in, whatever its called is the worst.
06/13, 7:05 PM
posted by:
NoNameDenton1
No bolex, the worst Ford commercial is the new one that says Drive One.
06/13, 7:29 PM
posted by:
jayjc08
Wow, I never knew Ford was spending so much on ads alone. Funny, I never see any of it.
06/13, 9:49 PM
posted by:
Bryce
In contrast to Toyota, GM’s truck advertising was (still is?) pretty weak.
06/14, 10:17 AM
posted by:
DeansterTJ
Like a ****,
Standing arrow straight,
Like a ****,
Grab and masturbate,
oooooo, oooooohhh
OOOH LIKE A ****!!
06/14, 10:18 AM
posted by:
DeansterTJ
^ ‘member that?
06/14, 1:42 PM
posted by:
johnnycanuck
That’s funny, Deanster. You said ‘member’.
06/15, 11:07 PM
posted by:
injunraiv
Bryce (post 9); I’ll have to agree. Any ad that makes that pig of a truck look good is quite a commercial…