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SUBSTANTIAL INCREASE CAR ADVERTISING BY FRENCH BRANDS
While car sales fell by 6% in the first half of 2014, media pressure increased by 17%. Total gross media spend on cars in the first six months amounted to €213 million.
The higher media budgets are remarkable, because car importers also have to make heavy cuts. Still, the marketing managers were allowed to spend more, while they became more and more focused in their advertising purchasing mix.
The cut was even generous for television advertising (+31%). The 5.8% increase in radio was also significant, but significantly less than in television. Out of home followed the market trend with an increase of 16.4%. The market share of television in the total media pressure has climbed to no less than 63%, radio is now at 21% percent and out of home at 8%.
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Ford goes for brochures
Print media publishers are undoubtedly very concerned about the customer group of car importers. The budget for daily newspapers fell by 50% in the first half to € 5.7 million and the share in automotive spending was only 3%. By way of illustration: in 2007 the daily newspapers could still count on 17% of the total advertising budget. Public magazines only had a share of 1.4% with € 2.9 million.
Surprisingly, the big winner of the first half was the medium type of leaflets. This advance was somewhat distorted by Ford’s solo action, because this brand spent no less than € 2.4 million on this most classic medium. Three quarters of the folder increase has already been explained.
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French brands step up
Of the major car brands, the French car brands in particular significantly increased the media pressure in the first six months of 2014. Peugeot in particular made a significant jump. Last year it was still very modest in seventh place, but now it is in the top position – narrowly ahead of Renault and Citroën.
Peugeot invested heavily in media for the introduction of the new 308. At Renault, the new Clio was responsible for the largest part of the budget. Ford (-11%), Opel (-25%), Kia (+1%) and Volkswagen (-1%), on the other hand, opted for economy, which was understandable given the limited number of introductions for these brands.
This article is adapted from the article ‘Advertising pressure is increasing for the French brands’, written by Clem Dickmann (AUMACON | www.aumacon.nl), that previously appeared in Automotive Management, August 2014, page 4-6 (www.automobielmanagement.nl).