Auto Ad Budgets Poised to Rise in 2011
With the auto industry looking to continue the recovery it began in 2010, analysts are predicting that manufacturers and dealers will increase their ad budgets in 2011. Spending is expected to rise both at the national and regional levels. Auto companies will be marketing both new and redesigned models along with those powered by hybrid or electric technology. In addition, marketers will use specific media formats to reach prospective buyers.
Both auto and truck sales jumped over 10% in 2010 and marketers anticipate similar growth this year. To boost sales, auto ad budgets rose by 24% between 2009 and 2010. In an interview with Reuters, Bob Carter, the Toyota brand chief for the United States, said "you'll see everybody in the industry increasing their spend simply because the market is growing.” Media formats benefiting from the 2011 growth in auto industry advertising will likely include TV and digital. High profile events like the Summer Olympics will certainly be a draw for these marketers. Local broadcast TV, which reported growth from auto marketers in 2010, expects to see similar activity in 2011.
IHS Automotive notes that 49 new or improved models will hit the market this year. This includes Toyota’s effort to turn Prius into a brand. Chrysler will be introducing the new Chrysler 300. And Porsche began talking up a smaller version of the Cayenne, possibly to be named Cajun, at this year’s auto show. Matt VanDyke, director of U.S. Marketing Communications at Ford Motor Co., notes that automakers will back the investment they have made in new models with additional advertising in 2011.[Sources: Klayman, Ben. Automakers to rev up ad spending in 2011. Reuters.com. 12 Jan. 2011. Web 17 Jan. 2011; Ramsey, Mike. Toyota Expands Prius into a Brand; Fuhrmans, Vanessa. Porsche Returns to Show with High Hopes. Wall Street Journal. 11 Jan. 2011. Web. 17 Jan. 2011]