Ford and Chrysler cut ad spending
#1
06-19-2008, 05:02 PM
Ford and Chrysler cut ad spending
Ford and Chrysler cut ad spending... uh oh
AutoBlog.com
Posted Jun 16th 2008 8:31AM by Chris Shunk
Filed under: Marketing/Advertising, Chrysler, Ford
While GM and Toyota are ramping up their marketing efforts, the folks in Dearborn and Auburn Hills are spending less this year. Ford pulled back ad spending in the first quarter by 31% to $291 million, while Chrysler took a deeper cut of 42%, to $186 million. Part of the reason for this decreased spending is the ugly reality of the new car market coupled with lean funds to pay for promotion, but the two automakers also don't have many new products to tout. During that same period GM was the number two advertiser in the U.S., with $535 million being shelled out for new products like the Cadillac CTS and Chevy Malibu. Toyota also spent big on the new Corolla and Matrix, as well as additional advertising for the Tundra. Ford will likely open up the purse strings in the next couple months for advertising for the Lincoln MKS, Ford Flex and the all new F-150. Chrysler will also have to spend on the all-new Dodge Ram and Dodge Challenger, while also continuing to push the Dodge Journey.
While it makes sense to cut back on spending in anticipation of spending more money when new products arrive, it still doesn't look good that both the Blue Oval and Pentastar cut back so dramatically. When times get tough and car sales become harder to come by, it only makes more sense to up the marketing dollars to help dealers who need to move these vehicles of their showroom floor. And, you know, we could always use a few more ads, too.
AutoBlog.com
Posted Jun 16th 2008 8:31AM by Chris Shunk
Filed under: Marketing/Advertising, Chrysler, Ford
While GM and Toyota are ramping up their marketing efforts, the folks in Dearborn and Auburn Hills are spending less this year. Ford pulled back ad spending in the first quarter by 31% to $291 million, while Chrysler took a deeper cut of 42%, to $186 million. Part of the reason for this decreased spending is the ugly reality of the new car market coupled with lean funds to pay for promotion, but the two automakers also don't have many new products to tout. During that same period GM was the number two advertiser in the U.S., with $535 million being shelled out for new products like the Cadillac CTS and Chevy Malibu. Toyota also spent big on the new Corolla and Matrix, as well as additional advertising for the Tundra. Ford will likely open up the purse strings in the next couple months for advertising for the Lincoln MKS, Ford Flex and the all new F-150. Chrysler will also have to spend on the all-new Dodge Ram and Dodge Challenger, while also continuing to push the Dodge Journey.
While it makes sense to cut back on spending in anticipation of spending more money when new products arrive, it still doesn't look good that both the Blue Oval and Pentastar cut back so dramatically. When times get tough and car sales become harder to come by, it only makes more sense to up the marketing dollars to help dealers who need to move these vehicles of their showroom floor. And, you know, we could always use a few more ads, too.