International: Automakers Will Steer More Spend From TV and Print Toward Digital
Analysts: Overall Outlays Will Be Flat or Down in '08 as Sales Slip Below 16 Million

DETROIT (AdAge.com) -- Next year could be a banner year for auto advertising -- online.
Beleaguered U.S. automakers are in for another rough road in 2008, with Detroit worst hit. Unit sales are expected to fall below 16 million, and researchers are predicting ad spending will be flat to down.
To move that metal, experts believe the industry will continue to put a lot more emphasis on digital and out-of-home. Network TV dollars also are predicted to migrate to spot as regional dealer associations take a firmer grip on spending.
Advertising researcher Kelsey Group projects that annual ad global spending by automakers, their dealers and auto services such as muffler shops will hold steady at $40 billion through 2011. The report predicted that online global auto ad spending will grow to 13% in 2011 from 5% in 2007, with traditional newspaper classifieds' share shrinking to 10% from 14% and newspaper display ads to 14% from 17% during the same period.
Kelsey Group estimates automakers' 2008 U.S. ad spending will be flat or down slightly. CEO Neal Polachek said carmakers will shift more dollars online and to out-of-home, with declines in TV, magazines, newspapers and direct mail.
Continuing TV decline
That is a continuation of a shift. Automakers, including their local dealers, have increased internet spending fourfold since 2002, according to TNS Media Intelligence -- to $739 million last year from $175 million five years ago -- and that undercounts outlays since search isn't included. TV and cable spending rose too but at a much slower rate, climbing to $10.1 billion last year from $9.1 billion in 2002, according to TNS, and magazines grew marginally.
General Motors Corp., which will allow regional dealer groups to pick their own creative or media agencies April 1, is steering them to the internet. The marketer's data show the net is the first medium chosen by consumers when car shopping, Brent Dewar, VP-field sales, service and parts for GM in North America, told Advertising Age. He said GM is trying to persuade dealer groups "to shift their focus to digital vs. spot TV."
Hyundai Motor America doubled its online ad spending for 2008 vs. 2007, Joel Ewanick, VP-marketing, told Ad Age. The automaker also is pushing for a return to spot TV in a big way. He said a bigger bump in spot TV is for regional dealer ad groups, while Hyundai will have a smaller increase for national TV.
Hyundai, which disbanded those regional-dealer ad groups in 2007, is reforming them and will quadruple its contributions to them next year, urging the groups to go back to TV, Mr. Ewanick said. Nationally, the automaker will also bump up its TV ad spending but not as much, he said, declining to give any specifics. "We have to get noticed," he said.
'Not really that bad'
Bob Schnorbus, chief economist at J.D. Power & Associates, predicted Americans next year will buy between 15.7 million and 15.8 million new vehicles with a continued move to smaller, fuel-efficient models. "We've been averaging 16.9 million units a year over the first part of this decade, so dropping below 16 million is not really that bad a year," he said. To stem the tide, Susan Jacobs, president of auto consultant Jacobs & Associates, expects automakers to put a lot of their efforts toward keeping their existing buyers. That, she said, will require more product advertising than brand advertising. "In a down market, it's better to channel your marketing efforts on retaining your owners instead of on advertising to conquest new ones," she said. So car companies will focus on customer relationship management and owner-loyalty programs, she added.
What buyers shouldn't expect is better price deals. Jessica Caldwell, an analyst with auto-info site Edmunds.com, predicted the car companies' incentives will stay flat in '08, although the industry average could rise a few hundred dollars from 2007's average of $2,300 a vehicle. "It's not going to be thousands of dollars more."
Not everyone is pessimistic about Detroit's chances next year. Troy Clarke, president of GM in North America, told Ad Age he believes 2008 will start slowly for the auto industry, like 2007 did, but gain momentum as the months pass. He said the auto giant's full distribution of models launched in 2007, including the Cadillac CTS and Chevrolet Malibu sedans, will help boost GM. "I'm optimistic," Mr. Clarke said.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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