LOS ANGELES A new analysis of the automotive industry by Todd Turner, principal at consultancy Car Concepts, shows significant disconnects between the segmented sales performances of some vehicles and the marketing dollars spent to promote those trucks and cars.
In fact, some of the findings were downright schizophrenic: strong ad spends failed to boost sales in some cases, while other vehicles have sold quite well despite minimal marketing support.
The survey takes into account each vehicle's share of segment and notes trends such as overall declines in some categories (trucks, SUVs) and rises in others (compact and economy cars).
"Until now, we hadn't been reporting each vehicle's share of its segment. This new way of looking at the numbers has helped us to instantly identify performers in particular markets," said Turner, whose practice is based in Thousand Oaks, Calif.
Example: Despite healthy ad spending and incentives on the relatively new Chevrolet Silverado -- marketed by Interpublic Group's Campbell-Ewald in Warren, Mich. -- the vehicle lost roughly 1 percent market share in the large-truck segment. General Motors spent $240 million on ads for that vehicle alone last year and $85 million through May, per Nielsen Monitor-Plus.
In contrast, sales of the barely marketed Ford Ranger -- which gets perhaps $100,000 in annual ad support through WPP Group's JWT -- has made a 4 percent gain in its segment through June in the flat compact-pickup class.
Toyota, however, can feel good about its $75 million to date ad spending on the Sequoia via Publicis Groupe's Saatchi & Saatchi. Turner called Sequoia's performance "a huge success, gaining 4 percent in a collapsing market."
Small and entry-level cars typically receive less marketing emphasis because of their tighter profit margins, but brands such as GM's Saturn have responded with full-line ads that show a range of vehicles. Saturn Astra/Ion is down nearly 3 percent on the year in the fastest growing segment, the basic small car class, which is up almost 3 percent overall. Last year GM spent $9 million marketing the model (including the Ion, which Astra replaced) and $11 million on Astra through May, per Nielsen Monitor-Plus.
"There has been marketing [of Astra/Ion]," said Turner. "When it was launched, [IPG's] Deutsch did a bang up job of creating awareness. Currently their spots specifically emphasizing fuel economy are running heavily on premium cable channels."
In the premium small-car class, the Audi A3 lost more than 4 percent of its market share. Again, the vehicle had been scarcely marketed by independent Venables Bell & Partners in San Francisco, with Nielsen Monitor-Plus tracking under $100,000 in spending since January 2007.
The dissonance between spending and results, Turner said, is further proof that "no amount of marketing can make up for product that isn't competitive in its segment."
