Automotive News - January 21, 2008 - (Page 32A)

JANUARY 21, 2008 • 32A marketing Ford snares star role in return of ‘Knight Rider’ Claude Brodesser-Akner cbrodesser@adage.com GM Certified markets online to Hispanics Arlena Sawyers asawyers@crain.com During the first incarnation of the “Knight Rider” TV series in the 1980s, one of the two lead characters was a Pontiac Trans Am that talked. But when KITT the car returns next month for a two-hour movie special on NBC, a Ford Mustang Shelby GT500 will play the role. Several General Motors cars and trucks, including a redesigned Chevrolet Camaro that was a virtual KITT clone, appeared last summer in the hit movie Transformers. So how did Ford Motor Co. ace out GM for the TV gig? “The old ‘Knight Rider’ ride? That car doesn’t exist, in essence,” says Dave Bartis,the TV show’s executive producer. “When you narrow it down to American-made, two-door muscle cars, we were left with one choice from each company.” Another factor: Ford’s deal with NBC goes beyond placing the Mustang GT in the movie. Ben Silverman, co-chairman of NBC Entertainment, says Ford made an “enormous” advertising commitment to the project. Silverman and Ford officials declined to offer a specific figure. Other Ford Motor vehicles will appear in the “Knight Rider” movie. Ford commercials during the broadcast will feature more The latest “Knight Rider” car is a Ford Mustang Shelby GT500. company products. “Coming off a summer of Transformers, it’s obvious how important this space is,” says Al Uzielli, senior adviser to Ford Global Brand Entertainment. “Our media buyers knew there had to be some advertising commitment to get involved.” If NBC picks up “Knight Rider” as a series next fall, Silverman says he expects Ford to be a prominent sponsor, much as it backs “American Idol” on Fox. Vince Manze, NBC Entertainment’s president of program planning, scheduling and strategy, says the network’s deal with Ford reflects a new marketing model. It goes beyond product placement to include early involvement by the advertiser, Manze says. “This was an effort by everyone — sales, programming and marketing,” Manze says. “It represents the future of good, natural integration. Here, the car really is the star.” c Automakers will spend more on digital ads Jean Halliday jhalliday@adage.com Online auto advertising could have a banner year in 2008, industry analysts say. Overall, though, automakers’ U.S. ad spending is expected to be flat to down this year. Experts predict the industry will place much more emphasis on digital and out-ofhome advertising such as billboards. Analysts say auto ad dollars now spent on network TV also are likely to migrate to local spot TV markets as regional dealer associations take a firmer grip on spending. Kelsey Group, an advertising research firm in Princeton, N.J., projects that global ad spending by automakers, dealers and service providers such as muffler shops will hold steady at about $40 billion a year through 2011. Kelsey CEO Neal Polachek says he also expects automakers to cut their ad spending this year on TV, in magazines and on direct mail. Automakers and dealers increased their Internet ad spending to $739 million in 2006, from $175 million in 2002, according to TNS Media Intelligence. A 2007 total is not avail- Hyundai marketing chief Joel Ewanick: “We have to get noticed.” Spend trends A new study predicts that through 2011, auto marketers will spend a larger percentage of their worldwide ad budgets online and less on newspapers. 2007* 2011* Online 5% Newspaper classifieds 14% Newspaper display ads 17% *Projected Source: Kelsey Group 13% 10% 14% able. The figures do not include spending on search engine marketing. From 2002 to 2006, auto ad spending on broadcast and cable TV rose slowly — to $10.1 billion, from $9.1 billion, TNS says. Starting in April, General Motors will allow its regional dealer groups to select their own advertising and media-buying agencies. GM is steering those groups to the Internet. The Web is the first medium consumers use when they shop for vehicles, says Brent Dewar, GM’s vice president of North American field sales, service and parts. Dewar says GM seeks to persuade dealer groups “to shift their focus to digital vs. spot TV.” Hyundai Motor America is doubling its online ad spending this year compared with 2007, says marketing Vice President Joel Ewanick He declined to offer specific figures. Hyundai disbanded its regional dealer ad groups last year. But under Ewanick, the company has revived the groups and plans to quadruple its contributions to them this year. Hyundai is encouraging the regional dealer groups to return to spot TV. The company also will boost its spending this year on national TV ads, but to a lesser degree, Ewanick says, adding, “We have to get noticed.” c General Motors is taking new steps to market its GM Certified used-vehicle brand online to Hispanic consumers. GM Certified now lists 60,000 used cars and trucks on www.AutoMercado.com, a Spanish-language automotive Web site. The vehicles are in the inventories of about 3,900 GM dealers in the United States. At the same time, a new link on the brand’s www.gmcertified.com Web site enables users to switch between English and Spanish. Paul Pejza, manager of GM Certified, says an estimated 7.1 million Hispanic consumers shop online. He cites research that reports 84 percent of Hispanic Internet users say they are more likely to shop for vehicles on the Web if they can do so in Spanish. Larry Pryg, GM Certified’s national advertising and marketing manager, says the brand’s partnership with AutoMercado “allows us to educate Hispanic shoppers about the benefits of GM Certified used vehicles.” AutoMercado.com lists more than 650,000 used cars and trucks from new- and used-vehicle deal- Larry Pryg: GM erships, says Melissa Commons, plans regional the Web site’s general manager. campaigns. The site attracts more than 100,000 unique visitors a month, she adds. AutoMercado.com says 77 percent of its users claim to prefer Spanish-language Internet sites. The vehicle listings on AutoMercado.com also appear in two print publications, Auto Mercado and Auto Mart. Cox Enterprises owns the publications and Web site. GM Certified’s Pejza says the brand is urging dealers, especially in markets that are heavily populated by Hispanics, to become more familiar with Hispanic culture. For example, Pejza says, Hispanic buyers often shop with their families, so dealerships need room to accommodate them. In some instances, he says, English-speaking children translate for their parents. In 2008, Pryg says, GM Certified and local dealers plan regional advertising campaigns aimed at Hispanic customers in Phoenix, Chicago, Southern California and parts of Texas and Florida. “These are the places it makes sense,” Pryg told Automotive News. Mark Gruwell, used-car director at Courtesy Chevrolet in Phoenix, supports GM Certified’s Hispanic outreach efforts, especially online. He says his dealership advertises in Spanish. Most employees of the dealership’s sales department and Internet business center are bilingual, he adds. “This approach on the Internet is new to us and new to GM,” Gruwell says. “But for us to be out there puts us one step ahead of our competitors. It’s going to help us sell more cars.” c FINANCIAL TOOLS THAT MOTIVATE PEOPLE AND MOVE PRODUCTS. + Test drive campaigns Buyer incentives Service loyalty rewards Lease/financing programs = INCREASED $ALES Springbok Automotive Services 1.877.288.6078 www.SpringbokServices.com Springbok Services, Inc. is a registered agent of KeyBank National Association.The card will be issued by KeyBank National Association pursuant to a license by MasterCard International Incorporated. MasterCard is a registered trademark of MasterCard International Incorporated. http://www.AutoMercado.com http://www.gmcertified.com http://AutoMercado.com http://AutoMercado.com http://AutoMercado.com http://AutoMercado.com http://www.SpringbokServices.com http://www.SpringbokServices.com

Table of Contents Feed for the Digital Edition of Automotive News - January 21, 2008

Campi will move fast to buy global Ford rolls out new F series — but will it stay No. 1? GM will push metro megastores BMW: We may need a 'green' brand Competition claims traditions German summit Toyota: We have enough plants for now Chinese pitch innovation, not just price Mercedes in, Cadillac out as sponsor of Masters golf tournament Auto show walkaround: Chasing the YIPS around Detroit New Acura TSX will get a diesel Toyota: We'll crack 35-mpg CAFE before 2020 Audi predicts 1 million global sales in 2008 Toyota crosses over into tricky segment LETTER TO THE EDITOR: Digital edition is a 'quantum leap' KEITH CRAIN: Here they come, ready or not EDITORIAL: Incentives war isn't the answer to sales downturn LETTER TO THE EDITOR: Toyota over Chevy? Don’t be too sure DIGITAL EDITION: You did your homework Chrysler concepts show brand tweaks Chrysler: 'Hemi is not powertrain of the future' Some of what we heard at the Detroit auto show Corvette has a future — but maybe a lighter, greener one Nissan exec: Cube is coming to America Subaru relies on new Forester Farley: Ford must groom the market Ford still funds Jag, Land Rover product development Ford will probably develop its new rwd cars in the U.S. Volvo considers North American production Good design: Solving problems, making a statement Horbury wants a more aerodynamic F-150 Hyundai upgrades next Sonata's interior M-B could build C class in U.S. VW hints at vehicles for new N.A. plant Customer demand for CTS sedans strains production capabilities at Cadillac GM to test ZR1 carbon fiber weight savings Honda Pilot has more room, power Indiana plant will boost Honda's flexibility Zetsche sees 20% diesel mix for Mercedes-Benz GM hopes to have E-Flex test vehicles ready by June GM to increase Enclave output Cadillac aims high with Provoq Pontiac to launch G8 marketing in March Big-truck sales fall 43.5% in Dec. Personnel Buckle up for a rocky '08, economists warn Canada sales up 2.4% in '07 Gioia: Ford hybrids will be profitable by year end American Honda opens workplace diversity office Dealers From CDs to Sync: Auto industry races to adapt in-car IT trends Microsoft exec sees a car as 'another room in the house' China's Geely plans plant in Mexico Chrysler exec: China exporters need time Murtaugh: Nissan deal won't affect Chrysler-Chery venture Strike by writers makes TV iffy for auto marketers Super Bowl auto advertisers get pre-game jitters Final Say GM bumps buyout total to 46,000 GM considers U.S.-made Astra Good Karma: Mean, green, fighting machine Purves confirms it: The end is near Rehab for designers: A change can do you good Tata's achievement: Redefining 'cheap' Fans remember auto commercials with sports themes Which brand is stronger — Scion or Prius? Engine advances bring cleaner emissions a step closer Suppliers to the 2008 Ford Focus Varable compression ratio makes a comeback Change the engine's stroke Integrate components to boost efficiency Reduce the size of the engine Eliminate the cams and count the savings ZF expects surge in new orders American Axle's rising son may be another Dauch Honda taps Web for workers Trelleborg unit adds tech center Kia restricts hiring at Ga. plant to Web applicants Magna pursues Ogihara Supplier personnel Age of intelligent transportation is getting closer Plastic spoiler saves weight Automotive News' cartoonist looks at 2007 8 will enter European Automotive Hall of Fame Pininfarina lifted family business to new heights Merciless cost cutter Calvet rescued PSA Opel boys turned bicycle venture into automaker Giacosa fathered the Fiat 500 JCI to supply batteries to Chinese automakers Automakers will spend more on digital ads Ford snares star role in return of 'Knight Rider' GM Certified markets online to Hispanics Writers' strike could benefit auto marketers

Automotive News - January 21, 2008

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