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    Car commercials are expected to be low this holiday season

    Vitali LaurentsikGetty Images

    • Fewer cars for sale means less reason to take shoppers to the showroom. In short, holiday advertising is expected to decline again this year.
    • Of course, automakers are already cutting advertising costs compared to the day before the pandemic. Digital car advertising fell by about 10% this summer and fall, and TV advertising fell by about 5%, according to Reuters.
    • Evacuation Supply chainHowever, even if you decide to put the bow on top of the gift car, you can do that. Some holiday traditions are completely unforgettable and special.

      Entering the second holiday season of the COVID-19 pandemic, automakers and their dealers face a new dilemma. The best way to promote a vehicle when the supply of those vehicles is limited.Given the challenges of the global supply chain and well-documented car manufacturing Plant shutdown This was done this year and the number of vehicles on sale is not as high as usual. And that leads to questions about how much to encourage demand.

      The answer seems to be to dial back things. NS Recent reports by Reuters It turns out that both car companies and local dealers have decided to reduce the amount of advertising they plan to do this year.

      Advertising costs are already declining during the pandemic. Analyst Pathmatics finds automakers spending about $ 24 million, or about 10%, on digital advertising between late July and the end of October compared to the same period in 2019 before the pandemic. Did. Another analytics company, EDO, has discovered that spending. TV commercials for the same month fell $ 57 million, down 5% again compared to 2019.

      “Winter sales events are so institutionalized that it’s hard not to do them,” EDO CEO Kevin Klim told Reuters. “But if they work really well, it can make people unhappy if the car isn’t there.”

      Simply reducing ads because the showroom is a bit barren is not an easy solution that might seem like it is. According to PureCars data, dealers who cut advertising spend between March and August this year had a larger overall drop in sales than dealers who changed their advertising message with more spending. PureCars found that the average sales volume of dealers, which reduced the amount of money spent on advertising by 50-89%, decreased by 28%. However, dealer sales, which increased advertising spend by 9%, fell by only 9%.

      General Motors told Reuters that it wouldn’t spend the same amount of money on advertising as it did in the past holiday season, but Ford has F-series trucks and some SUVs. “Get ready for the holidays” motion. Retailer AutoNation will also reduce spending this year. Lexus again takes over the screen with the “December to Remember” message, but they may look different than before.

      Lexus December commercial

      Lexus has been running a campaign for over 20 years. “It’s too important for the brand for us to change it dramatically. It’s part of our DNA,” Lexus, Vice President of Marketing at Vinay Shahani, told Reuters. Shahani said Lexus would spend about the same amount as in the past, but “certainly you could expect the offer to be less attractive than it used to be.”

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    Car commercials are expected to be low this holiday season

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