More auto ad dollars heading to Internet

More auto ad dollars heading to Internet

Videos, feedback links help attract potential buyers

BY KORTNEY STRINGER
FREE PRESS BUSINESS WRITER

October 9, 2006

Used to be, automakers would use a 30-second TV ad with a shiny, fully loaded, chick-magnet of an automobile to lure consumers to car lots.

Now, they're often using the Web to seal the deal.

As more people use the Web, automakers -- like most advertisers -- are following them there.

In order to appeal to the next generation of car buyers, automakers such as Ford Motor Co., Toyota Motor Corp., General Motors Corp. and DaimlerChrysler AG's Chrysler Group are spending more ad dollars online for everything from pop-up ads to online videos called webisodes, and less on traditional ads on network television.

According to the Television Bureau of Advertising, companies spent nearly $7.8 billion for online advertising in 2005, compared with $6.9 billion in 2004. At the same time, advertising on network television fell 3.5% to $16.1 billion.

But the auto industry has been even more aggressive about its online advertising efforts, according to Stamford, Conn., advertising research firm PQ Media, which said automakers increased annual online ad spending by 37% to $1.23 billion last year compared with 2004.

Online ad spending is difficult to quantify because of its many facets.

Chrysler's Dodge brand is allocating 20% of its Caliber ad budget to online advertising and gaming. For its Aveo compact, Chevy said it plans to spend 50% of its ad budget for alternative media -- with a significant portion going toward online advertising.

And in the first eight months of this year, Ford said overall online advertising for its brands grew six percentage points to 14%, compared with the year-ago period.

"They're shifting ad dollars to nontraditional media, which includes product placements, video games and online advertising," said Leo Kivijarv, PQ's vice president.

Wide reach

Automakers, in general, see the Web as a way to engage a large number of customers, many of whom have grown bored with and resistant to traditional 30-second TV spots. But companies are throwing the most online advertising heft behind vehicles that are geared toward trendy, young adults.

For instance, when Chrysler's Dodge brand launched the Caliber, which is geared toward 25- to 35-year-olds, it used some nontraditional approaches to advertising in its "Anything But Cute" campaign.

The brand posted Caliber information and online games on Web sites such as the Onion at www.theonion.com, Daily Candy at www.dailycandy.com, www.myspace.com and www.friendster.com.

Additionally, Chrysler said it spent 20% of its advertising budget online when launching the Jeep Compass, which targets the 22- to 30-year-old age group. One of the efforts allows potential consumers to view videos of emerging music artists performing in Compasses across the country.

"If you go back four or five years ago, it was good if you were spending 4% or 5% of your advertising budget online, and a year ago, 10% made a good mix," said Mark Spencer, a Chrysler spokesman. "The offline elements are still important, but the idea is to drive people to our Web site. I think 20% of advertising going toward online advertising will become pretty standard, and it may go up from there."

To be sure, Toyota said online ad spending for its Yaris small car, which targets ages 18 to 34, is 2-1 compared with traditional advertising. Among its online advertising efforts, Toyota had a banner ad that connected to an online game in which consumers could drive a Yaris.

"The main philosophy is not to just be there on the Web waving a banner, but to get users to enjoy it and actually give them information they can use," said Toyota spokeswoman Cindy Knight. "Users spend more time on those types of sites."

Going interactive

For its part, Ford has used some of its online advertising budget to produce movies for the Internet. Lincoln has been running "Lovely by Surprise" episodes for the Zephyr sedan on www.lovelybysurprise.com, and Mercury has "The Neverything" videos about two brothers who live a childlike existence to promote the Milan sedan on www.theneverything.com.

In June, Ford also launched www.fordboldmoves.com, a Web site where people can see "Bold Moves: The Future of Ford" online videos that chronicle various aspects of Ford's North American business, from assembly-line workers to executives talking about where Ford went wrong. On the site, customers can comment on the video and read opposing viewpoints about various topics, including "Crossing Over: Is There Life after SUVs?" and "Fusion vs. Camry?"

"Clearly, online advertising as a portion of our mix is increasing and it's important to us," said Whitney Drake, a Ford spokeswoman.

Multimedia approach

While online advertising is increasingly important to automakers, it's often connected to other advertising on television and in print.

Earlier this year, GM's Chevrolet brand did some cross-marketing when it launched a contest offering viewers of NBC's "The Apprentice" a chance to win trips and cash for going online to create the best 30-second online ad for its 2007 Tahoe SUV.

And this month, GM's Saturn brand partnered with Google Inc. to launch a Web-based advertising campaign that offers clickable video clips, Google Earth satellite mapping and the ability to find the geographic locations of people who are using the computer in six cities across the country with Saturn dealerships.

"There's so much more we can do to be better marketers and give customers a better experience with the Internet and Web," said Linda Pesonen, marketing director for customer relationship management.

Contact KORTNEY STRINGER at 313-223-4479 or stringer@freepress.com.

Copyright © 2006 Detroit Free Press Inc.

Reposted by Zach Hoffman
www.SEO.cc - Online Marketing Agency
Zach@SEO.cc
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