Auto Spot TV spending correlates to sales results?
July 29, 2006
A Television Bureau of Advertising analysis of 2Q ’06 automotive ad spending data compiled by TNS Media Intelligence points to a strong correlation between spot TV ad spending and vehicle sales.
“I think the message here is indisputable,” said Chris Rohrs, TVB president. “Buy spot, sell cars.”
As a group, the “Big Three” (GM, Ford and DaimlerChrysler) reduced spot TV spending by 1.3% during the second quarter and vehicle unit sales declined 12%. On the other hand, the “all other” grouping (led by Toyota) increased spending on spot TV by 8.7% during the quarter and realized a unit volume increase of 5.2% in an overall market that was down 5.5%.
Toyota, in fact, pushed its spot TV spending up 14.1% during the quarter and its unit sales grew 11.8%. Volkswagen had a 40.1% increase in spot spending and enjoyed the largest unit volume growth (up 14.3%). Of the top spenders in the “all other” group, only Nissan reduced spot spending for the quarter; Nissan’s 19.5% cut in spot TV spending correlated to a 10.6% drop in unit sales volume.
TVB’s analysis includes all three tiers of automotive spending: factory, dealer associations and individual dealers.
To view information CLICK below (Microsoft Excel required):
http://www.tvb.org/xls/about/1ST-HLF-06-SPOT-TV-TVB-AUTO-CHART-8-7-06-2.xls
