VW Keeps Spending on Ads, Which Helps its Market Share.

Posted by truecreek on May 4, 2009 under More Dam News | Be the First to Comment

By Theresa Howard, USA TODAY

Car advertisers that maintain their ad spending can rev up market share in down times, gaining an edge to exploit in a recovery.

Sure, the auto industry is in the doldrums. Car sales through April this year are down 37%, to about 3 million vehicles from 4.8 million through April last year, according to Autodata’s latest sales report out Friday.

But while some brands all but stopped spending on marketing, others kept or increased their budgets, particularly for new or improved models. Among those for whom that paid off:

Kia Motors increased U.S. ad spending 43% in 2008 vs. 2007, according to ad tracker TNS Media Intelligence. Its U.S. market share is up from 1.9% at the end of 2007 to 3.1% through April of this year, according to Autodata.

Mercedes-Benz raised ad spending 39.8% in 2008 vs. 2007. Its U.S. market share is up from 1.6% at the end of 2007 to 1.8% through April this year.

Volkswagen raised ad spending 45.7% in 2008 vs. 2007. Its U.S. market share is up from 1.4% at the end of 2007 to 1.9% through April of this year.

VW’s U.S. marketing chief, Tim Ellis, says that despite the tough sales year, 2009 ad expenditures will be held even with 2008.

“When we invest in marketing, things happen,” says Ellis. “We think it’s important to stick to our roots and stick to our value message. We’re getting a higher percentage of the dwindling marketplace. And when this crazy situation comes straight side up again, we’ll be positioned to increase our share even further.”

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