Auto Advertising: Big Three Need an Attitude Adjustment

The auto show is under way in Detroit. But this year it's about far more than just having good-looking models and high mileage.

The auto industry faces an even bigger battle with perception. Their names, balance sheets and models have been dragged through the mud and now they have to figure out what kind of marketing approach will get cars off dealers' lots.

But now, just as the big three have to launch campaigns to regain customers' trust, the government is watching every dollar the big three spend. Bottom line: where and how the nation's automakers advertise is more important than ever.

I consulted with a number of advertising and branding experts about the auto makers situation and one thing is clear: they have to revolutionize the substance, style and execution of their old ad game.

And the old auto game was a powerful one—the release schedule for new cars in the fall is what created the network TV season, built around new auto ads. In the past auto ads were about showing how sleek and sporty cars are, how sexy they'd make you feel. Eric Dezenhall, CEO of Dezenhall Resources says now auto ads have to convince people that the cars are going to work and the companies are going to exist long enough to service the car they're trying to sell.

The ad formats now need to maximize bang for the buck. Publicis NY CEO Joe McCarthy tells me that companies that consistently advertised in the Super Bowl for the past two decades should really evaluate if it makes sense for them to now. In fact, in a congressional hearing for the automakers a few months ago GM CEO Rick Waggoner made a point to say that GM would not be advertising in the Super Bowl. Not only is it a question of whether it's worth it-- the companies now have to evaluate how good or bad their expenditures look to the public. Now, instead of pricey TV spots, the big three would be wise to try to target specific demographics and certain regions. The automakers would show consumers that they understand their needs if they speak to the bad weather in the Midwest or the need for good mileage in a commuter area.

One thing auto makers may be doing right, is their advertising focus on their capacity to finance auto sales. Dezenhall says that focusing on financing allows the auto makers to acknowledge the problem, and reassure, without going into too many details. Directly addressing the bailout in a 30-second spot or appealing to consumers to buy American through the recession could be a turnoff. But reassurance and a true understanding of how bad their image is, has to be part of every ad the auto industry makes.

And if one of the big three really innovates with their ad model (as well as their car models) this recession could actually offer a huge opportunity. In the great Depression Procter & Gamble (PG)ncreased its advertising and grabbed a lot of marketshare.

We'll see if Ford (F), GM, or Chrysler can turn their ad model around fast enough to reassure consumers and capture their dollars once they're ready to spend.

Comments

[Independent...:]

The title here is about "attitude adjustment". That really got my attention. The stereotype attitude for the Big Three is "proud". From those recent congress hearings, even the word "arrogant" was used and debated a few times. The proud will be humbled, and the humbled will be honored.
Right now, I believe they have been humbled, and it's time for them to be honored.
On the other hand, Asian auto manufacturers market their products with a very realistic truly humble attitude. They know, they cannot afford to lose their customers. Nowadays, especially in auto industry, too many competitions are wiping out almost all (if any) monopolies. The Big Three leaders really humbled themselves in front of the whole world at those Congressional hearings. In fact, it is those comments from some so-called "concerned" congressmen that really sound "arrogance" in its true sense. They made simplistic harsh offensive comments just to safe-guard their seats without fully understanding what impact will auto industry's operation have on the national economy.
Nothing wrong with being humble. Look at Japanese business world, the Chinese... humble is good in many ways.

Jan 13 10:40 PM

[The Betsy:]

I was just thinking about auto commercials this morning while drinking my carrot juice. I would love to come up with some stunning, never-thought-a-that-b... phenomenal ideas for commercials, made on a shoe string budget, for the American auto industry. I think they could be fun and challenging to write -- hopefully not too sappy or machismo. The U.S. auto industry is a very worthwhile investment. Is there really still such a thing as "American" ideas and innovative? Maybe innovation stopped with the our parents' generation. Got any ideas in the here and now? Send them to the companies. Drink your carrot juice.

Jan 14 05:21 PM

[31October:]

All US and German auto manufacturers have little respect for their consumers. But one thing American manufacturers need to fix is the perception of quality.

GM & Ford do not need to run ads based on emotion or touting financing.

They need to talk about the shocking improvements in quality.

Then they need to talk about it some more.

Then they need to talk about it some more, until Toyota runs Superbowl ads telling them to just stop talking about it.

Jan 16 04:11 PM