Car Firms That Spend the Most on Ads Aren’t the Ones Whose Messages Sink In, Survey Says
If there were any logic on Madison Avenue, the advertisers with the fattest ad budgets whould also be producing the campaigns that consumers best remember, right? Guess again.
When it comes to automotive print advertising, the importers with the smallest ad budgets are walloping their bigger-spending American rivals, according to a recent survey by a widely respected research firm. The auto world’s two best-remembered print ad campaigns of 1990 were created by two of the smallest advertisers: Porsche and Jaguar.
In a survey of consumers by Starch Inra Hooper, only three American car makers cracked the list of the 10 best-remembered automotive print advertisers. This is a bad omen for the American auto industry, because increased ad recognition can translate into increased sales. At the least, the results show that American cars are not on the minds of many American consumers.
Experts say the problem that ad agencies face is identical to the biggest stumbling block confronting the Big Three auto makers themselves: bureaucracy.
“Back in Detroit, there are too many cooks in the kitchen,” said John Hirschboeck, president of Team One Advertising, which creates ads for the Lexus division of Toyota. “In Detroit, even the guy in charge of tires has some say about the tires appearing in the ads.”
As a result, print ads for domestic car makers are often yawners. In Starch’s detailed study during the past two years, more than 43,000 magazine readers who viewed 1,500 automobile print ads said foreign car ads were generally more memorable.
For example, a Porsche print ad--featuring a convertible silhouetted by a star-filled sky--grabbed consumer attention because it was elegant and uncluttered, said the survey. Consumers were unimpressed with a print ad for the Chrysler Imperial, which the study said had poor headlines, a flat background and copy too small to read.
Auto makers are expected to spend more than $1 billion on domestic magazine advertising over the next year. Much of that money will be wasted, the survey suggests. Its results come at a time when auto makers are gearing up for 1992-model sales--and thus when automotive print advertising is hitting its peak. Typically, before consumers purchase cars, they turn to print advertising for more complete information.
“TV ads get lost in the ozone once the 30 seconds are up,” said Philip W. Sawyer, director of communications for Mamaroneck, N.Y.-based Starch. “But magazine ads have a great deal of power over what people are going to buy. The auto importers are doing a better job than the domestics.”
In the Starch survey, print ads by importers with tiny ad budgets such as Alfa Romeo and Rolls-Royce ranked far above such big spenders as Ford, Chrysler and General Motors. The only American nameplates to crack the Top 10 were Lincoln, Chevrolet and Mercury. The results were compiled when Lexus and Infiniti had just begun their ad campaigns.
Some marketing experts questioned the validity of the survey. “The survey had to be biased,” said Ted Sullivan, a consultant at Bala-Cynwyd, Pa.-based WEFA Group. “I can’t see why Rolls-Royce print ads would stand out. They only appear in upscale magazines.”
Even when people say they remember ads by certain auto importers, that rarely translates into sales, added Fred Zufryden, marketing professor at USC.
But Sawyer said his survey specifically asked consumers if they intended to purchase imports or domestic cars in the next year. Most of those buying imports read only the import car ads. But domestic car buyers said they studied both the import and domestic ads. “Through their advertising,” Sawyer said, “the imports will continue to extend their influence.”
The novelty of imports may play a role in how consumers react to their ads. “Many of these imports benefit by being exotic,” said Arvid Jouppi, an automotive consultant in Grosse Pointe, Mich. “The products themselves draw people into the ads.”
Even Porsche’s ad agency agrees with that assessment. “There is an inherent appeal to the product,” said Jinny Grossman, management supervisor at the Minneapolis agency Fallon McElligott. “Just the name Porsche draws attention, so that’s the first ace in the hole.”
Advertising experts, however, also credit Porsche’s agency for creating breakthrough print advertising. Porsche does much more than just show glitzy pictures of its cars. Many of the print ads are jammed with information not only about the car but also about the company.
“Car buyers want as much information as they can get in print ads,” said Steve Ellwanger, editor of Inside Media.
“Besides being visually appealing,” said Ellwanger, some Porsche print ads have even discussed the life of Dr. Ferdinand Porsche, who designed the car.
American cars are losing market share, while Japanese cars are increasing theirs. This phenomenon bolsters the survey’s findings. But striking ads don’t always lead to sales, and Porsche is a case in point.
Porsche spent slightly more than $5 million on domestic advertising last year--and sold just 7,000 cars here. “Look at it this way,” said Team One’s Hirschboeck. “They have to work a lot harder putting out each Porsche ad. Half the year’s advertising budget may be behind it.”
Win May Mean Hires at Cohen/Johnson
They’re pumped up at Cohen/Johnson. The Los Angeles agency late Monday won the creative and marketing portions of Bally’s Health & Tennis’ $64-million ad business. The win is expected to result in large-scale hiring at the firm, which also creates ads for Jack In The Box.
Briefly
Pepsi has redesigned the logo and package designs for its Pepsi, Diet Pepsi and caffeine-free versions. . . . K-Swiss Inc., the Pacoima-based athletic footwear firm, has awarded its $4-million ad business to the Los Angeles agency Kresser/Craig. . . . Clarion Sales Corp., the Gardena car audio equipment maker, has handed its ad business to the Los Angeles agency Stein Robaire Helm.
Foreign Car Ads in Gear About 43,350 magazine readers nationally were exposed to a series of 1,500-plus automotive print ads for the 1990 model year. They were asked to point out the ads they remembered seeing in print. The following is the ranking of the best-remembered ads based on results of the interviews. 1): Porsche 2): Jaguar 3): Lincoln 4): Rolls-Royce 5): Mercedes-Benz 6): BMW 7): Chevrolet Infiniti Peugeot 8): Alfa Romeo 9): Honda Mazda Mitsubishi 10):Audi Lexus Mercury Source: Starch Inra Hooper, Mamaroneck, N.Y.
