Auto Advertisers Take Varying Tacks To Navigate Sobering Times
October 27, 2008
By Dale Buss
Two things are for sure about the humorous ongoing Volkswagen of America advertising campaign, "Das Auto": It polarizes many viewers into groups who love it or hate it; and it's one of the few examples of an automaker relying on comedy as the fulcrum of its marketing strategy these days.
One ad depicts "Max," an ancient VW Beetle, as a talk-show host poking fun at the global credentials of actor David Hasselhoff -- with the hoary celebrity playing along -- as it points out that Volkswagen is adored worldwide, especially in Europe.
VW's most recent network-TV spots feature actress Brooke Shields, a celebrity mom who isn't exactly known for her comic turns. No matter: In the ads, she uses various methods to purport that Americans are staging a mini-baby boom simply so that parents have an excuse to acquire the "German engineering" behind the new VW Routan minivan.
The campaign has helped Volkswagen outperform most other brands in retaining U.S. market share lately. "Two of the [Das Auto] spots were among the top 10 spots recalled by consumers when we were in campaign-launch mode," said Laura Soave, a marketing general manager for Volkswagen of America. "And we've been scoring unbelievably high on likeability and memorability."
But VW's approach is far from the obvious one at a time when American consumers are understandably preoccupied with fluctuating gas prices, the disintegration of their investment nest eggs, the struggle to find auto financing and the continuous anxiety produced by a heated presidential campaign.
"VW is pushing it, definitely," said George Rogers, chief executive officer of Team Detroit, the agency consortium that handles Ford's advertising. "It's the only advertising I see right now that is doing something like this."
Remember When
Only a year ago, automotive TV advertising in the United States was still dominated by images of power, style, enjoyment and freedom -- often with a big dose of humor -- that have been more or less typical of the genre for generations.
Representative of what carmakers were running then was the memorable Cadillac campaign
that features actress Kate Walsh driving - and essentially getting turned on by -- her CTS. Ford was still airing ads that helped launch its successful Edge crossover, featuring the vehicle impossibly scaling an urban landscape. And even as late as the Super Bowl in February, Audi spoofed The Godfather
to launch its hot new R8.
What a difference a year -- or, actually, just several months -- has made. Beginning last spring when gasoline prices were skyrocketing, most automakers made a quick pivot to advertising fuel economy almost exclusively in some way, shape or form. In doing so, they essentially abandoned messages not only about gas-guzzling horsepower but also about innovative design, new creature comforts, and just about anything else that didn't have to do directly with easing consumers' pain at the pump. Even German luxury makes largely went down that path.
More recent events have added to the impetus toward sobriety in advertising on television and in print. The downturn in auto-industry sales has been symptomatic of growing economic angst among Americans -- flames that have been fanned by all the political hot air. And recent near-meltdown of the global financial system because of the decay of credit in America heaped another load of trouble into the mix.
"This is a period of retrenchment," said John Grace, a branding guru and president of Brand Taxi, in Greenwich, Connecticut. "There's practical retrenchment: We have less money. But there also is emotional retrenchment: We don't want to appear to be a big spender even if we can be."
Rogers said that every automaker "is dealing with the sober reality of coming up with a message that has some emotion and inspiration in it, but also serving up some of the rational bits that people require. That blend is important."
New Era
Also driving the no-nonsense new approach are three other huge factors.
The first is automakers' growing curtailment of marketing spending. Most automakers have cut their advertising budgets significantly so far this year, leaving little room for campaigns that may seem frivolous to consumers and, to corporate superiors, heedless of return-on-investment considerations.
Second, because the market is so dry, most automakers have decided that they need to dip back into their bag of incentive tricks to generate more showroom traffic. But ad expenditures devoted to spreading the word on incentives, like Toyota's recent zero-percent financing, must be subtracted from branding and vehicle-promotion efforts.
Third, the new climate also is helping to accelerate the continuing shift in marketing spending toward the Internet and other digital media and away from traditional outlets such as TV and print advertising.
J.D. Power and Associates' 2008 New Autoshopper.com Study found that 75 percent of new-vehicle buyers in 2008 are using the Internet during their shopping process, compared with 70 percent in 2007. This year marks the largest year-over-year increase in online shopping since 2001. The total amount of time shoppers spend online researching automotive information has also increased since 2007-- up 12 percent to more than six and a half hours.
Earlier this year, questioning a consumer focus group in Washington, D.C., Mark LaNeve, GM's North American sales vice president, asked participants to describe a recent car commercial they had seen on TV. "Guess what?" he recounted about the incident, in a speech a couple weeks later. "None of them could do it."
Given that, it's not a huge surprise that GM bowed out of advertising on the recent Emmy Awards and has indicated that it also plans to skip TV commercials during next spring's Academy Awards. GM executives also are hinting that they won't advertise on Super Bowl XLIII, though they have said that's mainly because their planned cadence of product launches disfavors the game's February 1 date. Hyundai, meantime, has picked up the void left by GM's departure from the Super Bowl.
Suitable Seven
In the TV advertising they are doing, automakers are mixing and matching these seven tactics for striking the right tone:
Shelving the guffaws. There's simply much less use of bald humor. Even Kia has stepped away from it. Until lately, the Korean brand had been heavily identified with funny spots including one that parodied the movie Flashdance and another that showed Kia cars hauling giant red stick pins on their roofs.
Volkswagen plowed ahead with its Das Auto campaign in part, Soave said, because it didn't really seem daring. Humor "is so ingrained in our culture that it just feels right."
In fact, VW executives believe their success on the other side of the downturn depends on it. "Especially during economic times like now, consumers need to believe that they're getting value for their money," said Brian Thomas, a marketing general manager for VW. "And brands that invest in their DNA, as we are, tend to be rewarded handsomely when the economy bounces back."
Emphasizing practicality. Ford set the reserved tone of the current era last spring when it kicked off a new corporate marketing campaign called Drive One. It largely consists of relatively dry spots touting one or more of four "pillars": technology, safety, quality and environmental benefits. And though Ford began planning Drive One last year, said Team Detroit's Rogers, "the current situation has probably put some more reliance and importance on those areas than ever before."
"Green" appeal is still growing, but with consumers riveted on fuel economy, it is increasingly
being blended with a gas-friendly message. For example, Lexus' recent campaign, called "The Power of H," touts its hybrid line, including its RX 400h SUV.
And GM has transformed its marketing emphasis over the last year into a nearly complete focus on fuel economy. Nearly all of its Super Bowl spots in February had something to do with that. And its latest brand-wide campaigns include a character called Fuel Guy for Buick, Pontiac and GMC brands.
For many months, Chevrolet mainly has been touting its several models that obtain at least 30 mpg on the highway. A new campaign is called "Fuel Pumps Hate Us," which relies on tickling visual punch lines to drive home the point that Chevrolet vehicles are downright stingy when it comes to burning gasoline.
That approach is meant to address how consumers actually think about the issue, LaNeve said. "Most people couldn't tell you what [mileage] they actually get within a mile or two," he explained. "But what they do know is how many times a month they fill up and what it costs to do that."
Soft-pedaling design. Ford's new Flex crossover arguably bears the company's most radical design stamp since the Taurus and Sable more than 20 years ago. But in its inaugural advertising for the vehicle, there's practically no mention of Flex's flat-topped styling.
"The styling piece is something that people understand," Rogers said. "This is a vehicle that needs to be experienced and seen. We already know it is somewhat polarizing and we think that's a good thing. So we're trying to serve it up in a wonderful light and let consumes decide if they want to join this club or not."
Overt attention to Flex's unorthodox styling could backfire, Rogers said, at a time when "consumers want to self-select and don't want to be preached to." Presumably, Ford also doesn't want to highlight Flex's boxiness and large size because they appear not very aerodynamic.
In any event, Flex's initial TV ad shows the vehicle traversing a stylized nocturnal landscape, focusing on amenities that take it "upscale" such as its available navigation system.
Toyota plans to emphasize design, it appears, in the upcoming launch of its Venza crossover. But that doesn't mean it will be touting the vehicle's exterior shape, which is not much of a departure from what has become industry norm for the segment.
Instead, Toyota will be promoting distinct touches such as what it calls the "60/60" design of Venza's instrument panel, which means that both the driver and the front-seat passenger have easy access to 60 percent of the dashboard and controls.
Highlighting utility. Usefulness has become king. Flex advertising already illustrates that as well, including a print ad titled "Unorthobox," about the vehicle's innovative onboard refrigerator -- "and many other ways to chill," as the ad puts it. Ford also sponsored a "road trip" by late-night TV host Craig Ferguson.
"We're leaning into differentiating it from your dog-drool minivan," Rogers said.
Consumers also are getting major doses of utility messaging as Dodge and Ford introduce new versions of their staple Ram and F-150 pickup trucks this fall. Those who remain in the market largely need and want trucks for work or heavy-hobby purposes.
So among other things, expect a continuation of the venerable "Built Ford Tough" theme for the F-150. "The personal user is pretty well dried up," Rogers said, "but there's a whole host of people -- and the brunt of the market -- who need a truck and use it for their living, which is very much alive and kicking."
Spotlighting innovation. While madcap humor may have become verboten, the consumer's mood is opening them up to messages that are effective and serious.
"There's a real chance to focus on innovation," Grace said. "Auto advertisers have to promote practical product advantages now, not, 'My car is cooler than your car.'"
So, for example, Ford will heavily market the technological leap it is calling EcoBoost engines, which promise to be more powerful and greener at the same time. "We're promoting this important story because it leans into the need for better mileage," Rogers said.
And Chrysler continues to emphasize the vastly improved utility of the new versions of the Town & Country and Dodge Grand Caravan minivans that it introduced last year. A new TV ad shows off features including rear-swiveling second-row seats and a game table in front of the third row.
Telling relevant stories. Auto consumers will still sit for storytelling, as long as it memorably communicates the useful essence of a vehicle or brand.
Chrysler succeeded with that approach when it launched an ad for its new Dodge Journey crossover early last summer, making up a tale about the actual members of the U.S. women's soccer team trekking down to Brazil in a pair of Journeys -- using nifty features such as the navigation system along the way. They had come, the tale went, to demand a rematch with the Brazilian team, which in real life had upset the American women in a World Cup semi-final match last year.
When Chrysler began running the ad again a few weeks ago, interest was a big notch higher, because the U.S. team in turn upset the Brazilian women for a gold medal at the Beijing Olympics in August. An addendum to the ad noted the 1-0 score.
Reminding of core values. Honda nowadays is using the theme that its long-selling Accord arguably is the best car sold in America. A very simple TV spot begins with an arrow hitting a wall, just above the hood of an Accord. Then a flurry of arrows hit nearby, all missing the Accord.
"Once again," the voiceover intones, "the competition is comparing themselves to the Accord. Nice to see them aiming so high."
For Kia, a return to touting its low-price niche in the market has replaced its abject humor.
"During these times you have to be true to what your core brand essence is, and Kia's is value," said Russell Wager, managing partner of David & Goliath, the Los Angeles-based ad agency that is handling Kia's creative these days. "But you still need to leave the consumer with something that will be a little more engaging. So versus out-and-out humor, we've shifted it more toward a smile."
That's why a Kia ad for "new kind of luxury" represented by its Borrego SUV takes a poke at typical luxury-brand commercials using a guy in a tennis outfit in front of his mansion. Yet the ad also uses the phrase, "In times like these."
"Consumers don't want to be reminded of their difficult times, but they want the brand to acknowledge what they're dealing with," Wager said. "They know you have to sell cars too, but they want you to talk with them in ways that ultimately may benefit them."
Audi has injected a fuel-economy message into its advertising of its A4 compact sedan and some other products, but the company considers the extra note only an add-on to the brand essence that it continues to communicate.
"We're discussing the technology of our cars and interiors and fit and finish and talking about what an absolute luxury our cars are," noted Scott Keogh, chief marketing officer for Audi of America. "Just because we tell a fuel-economy story, it doesn't mean we give up the ship."
Two Examples
A pair of new advertising campaigns tied to specific vehicles illustrate the middle ground that most auto marketers are trying to find -- using the above techniques and others -- between traditionally successful advertising themes and types and the requirements of adapting to new realities.
During the Super Bowl, for example, Toyota relied entirely on humor in a spot introducing its new Corolla, depicting a driver hilariously trapped in the car with a very disturbed mama badger.
But in one more recent ad for the same car, Toyota introduced a dispassionate discussion of gasoline prices and then promised viewers that the new Corolla "gets you far enough away to forget your worries."
On the other hand, Cadillac's TV spots for the new Escalade Hybrid are very consistent in tone and style with its long-running ads for CTS and the regular Escalade that emphasize style and excitement. The driver says he was always hoping Cadillac would make a hybrid out of an Escalade -- but that's as far as the new ad goes in touting fuel economy. The emphasis is still more on the hot Escalade than on its mileage.
"When we look at reasons for purchase," said John Howell, Cadillac's global product director, "fuel economy doesn't even come up in brand-new data as a reason to purchase any luxury car -- segment-wide. It can be a reason to reject if it gets very poor mileage -- but it isn't a reason to buy."
Thus the tone. "And frankly, Cadillac has more work to do in the area of making sure our brand is viewed as acceptable for the country-club set or the CEO set or the types of people who should be driving a luxury car. We have to make sure our brand and its attractiveness is enhanced, and I'm not sure messages about fuel economy will do that."
Cadillac's decision in part reflected GM's conviction that, in the words of LaNeve, "you'll continue to see design and you'll see fun and you'll see utility" in auto advertising. "What I don't think you'll see is a lot of emphasis on horsepower and top-end performance for awhile."
Grace, the consultant, agreed. "There's still joy and excitement in the purchase of a new car; life hasn't stopped," said Grace. "But value should be emphasized more than bells and whistles -- or bling."
Photos by manufacturers
1 - Actress Brooke Shields hawks the Volkswagen Routan minivan with humor.
2 - Actress Kate Walsh pitched the Cadillac CTS for its power.
3 - Audi's Mileage Marathon is one of many automaker efforts to emphasize green.
4 - Early Ford Flex ads focused on styling.
5 - Chrysler ads emphasize the utility of its 2009 Dodge Ram, such as its RamBox storage.
Posted by Michelle Krebs at 6:43 AM under Analysis , Companies , Featured | Comments (0) | digg this | Seed Newsvine
Leave a comment