Thursday, May 18, 2006
Automakers feeling pain at the marketing ROI pump
byThink SUVs are inefficient when it comes to gas efficiency? Now comes word that car makers are losing traction on the marketing ROI efficiency slope. As reported in a May 18th AdAge.com article, Automakers Lagging in Marketing Efficiency, spending is rising, but prospects are not, except for a few niche imports.
As the article states, even though the top 37 auto brands last year shelled out approximately $1 million per day per brand in measured media (or on average $192 to reach a single shopper, or $1 more than in 2004), the net increase in generating potential purchasers didn’t budge from 2004 levels. According to the article, based on an estimated 3.4 million shoppers a month, automakers are shelling out $41 million more to reach the same number of people.
AdAge reports that these stats come from a research firm called Compete, which “measures unique, in-market shoppers across 30 independent online channels as well as offline and compares each brand to its measured media spending as compiled by TNS Media Intelligence.”
However, Isuzu, BMW’s Mini, Toyota’s Scion and Porsche have smaller target audiences and “they don’t necessarily have to use some of the increasingly inefficient mass media as the bigger auto makers,” according to the article.
Or, as the article states, maybe it’s just that “with their smaller budgets they’ve made their marketing money work harder.”
Wish we could say the same for our dollars at the gas pump.
