Automotive News - May 26, 2008 - (Page 22B)

22B • MAY 26, 2008 marketing Car marketers: Magazines must widen ad reach Mary Connelly mconnelly@crain.com Turning the page Auto advertising in magazines is routinely tied to special events, online media and TV commercials. Here are some recent examples of multimedia ad campaigns. BRAND PUBLISHER CAMPAIGN Magazines still connect with consumers, auto marketers say. But that isn’t stopping car companies from demanding more integration of the magazine advertising they buy with broader marketing campaigns, including Internet, TV and event promotions. And publishers are complying. “We still believe in magazines,” said Betsy Lazar, General Motors’ executive director of advertising and media operations. “People are very passionate about magazines, especially women’s magazines.” Yet Lazar conceded that “our spending in magazines has diminished over time as we have shifted to digital” advertising. She declined to disclose GM’s magazine ad budget for 2008 but said the magazines in which the company now tends to advertise are “narrower, lifestyle-focused” titles. “We tend to think about magazines as part of a platform that we build out,” Lazar told Automotive News. “Many of the magazines have evolved into digital platforms as well. Some magazines have enormous Web followings.” For example, she said, Chevrolet advertises in a Conde Nast Media Group promotion called “Fashion Rocks.” The promotion, tied to Fashion Week events each fall in New York, includes advertising in Conde Nast magazines and on their Web pages and sponsorship of a rock concert and TV show. Chevrolet Chrysler Dodge Conde Nast Hearst Time “Fashion Rocks” “Awaken Your Senses” “Dodge Journey of a Lifetime” GM advertising chief Betsy Lazar: “People are very passionate about magazines, especially women’s magazines.” consumer test drives. Says Hamill: “Custom print (ads) across multiple magazines and custom digital on the Web sites would get better results than just running a banner ad on digital or just running generic print ads.” Mark Spencer, Dodge’s senior manager of communications, says magazine ads remain useful to get cars and trucks on consumers’ shopping lists. “Magazines are still broadly read,” Spencer says. “They are great vehicles for improving consideration, because people do read the content if you make it interesting and engaging.” Chrysler Sebring convertible print ads told readers to “Awaken Your Senses.” Campaigns that extend beyond magazine pages will continue to grow, says Jeff Hamill, senior vice president of advertising sales and marketing for Hearst Magazines. Auto ad spending on magazines is “leveling off” after declining substantially over the past five years, Hamill says. One reason, he says, is that publishers have become adept at melding print advertising with other media. “It will be this approach: model by model, media partners building customized communications platforms across their assets,” Hamill says. Print and digital ads “work really well together,” he adds. A Hearst promotion for the 2008 Chrysler Sebring convertible, called “Awaken Your Senses,” included print ads, an online sweepstakes and Extended Journey Dodge is using a wide range of magazines in its ad campaign for the new Journey crossover. To reach younger buyers, Dodge is advertising the 2009 Journey in magazines such as Men’s Health, In Style and Self. Journey ads aimed at empty-nest baby boomers are appearing in Newsweek, More, Travel & Leisure, Smart Money and AARP The Magazine. Dodge also is working with Time Plugging the Volt Last year Chevrolet used the promotion to advertise alternative-powertrain vehicles such as the Volt plugin hybrid and fuel cell Equinox SUV. Ads featuring singers Mary J. Blige, Fergie and other popular musicians appeared in 13 Conde Nast magazines, including The New Yorker and Vanity Fair. Inc. on a program called “Dodge Journey of a Lifetime.” Ads in May issues of Time, People, Sports Illustrated and Entertainment Weekly direct readers to the Web site www.dodgejourneyofalifetime.com, where they can register to take part in a contest that will award various trips. Spencer declined to say what Dodge is spending on the Journey campaign. Like larger marketers, Audi has reduced its reliance on magazine ads, says chief marketing officer Scott Keogh. “We use magazines a very small amount,” Keogh says. “Our online budget is probably four times our magazine budget.” He did not disclose Audi’s ad spending. The relative spending is not necessarily a negative judgment of the performance of magazines, Keogh says. “This is a matter of strategy and prioritization,” he says. Jim Helberg, executive vice president of PHD Detroit, Chrysler LLC’s media buying agency, argues that magazines “have the potential for solid growth.” But he cautions that publishers must “diversify resources, including digital, and cooperate with other media partners to provide content for multiple media.” Adds Helberg: “Our job is to direct that mix across platforms.” c Laura Clark Geist and Lillie Guyer contributed to this report Automakers seek ‘one-to-one’ approach to magazine ads As automakers’ ad dollars migrate from print to digital media, publishers such as Hearst Magazines are fighting back. Hearst is offering auto marketers packages that meld print advertisements with Internet and event marketing. Jeff Hamill, 49, is a senior vice president of Hearst Magazines, overseeing advertising sales and marketing for the company’s 18 consumer titles. He spoke with Special Correspondent Laura Clark Geist. About a year ago, magazine industry executives visited automakers to talk about the value of the medium for car advertising. What was the result? The erosion has leveled off for all magazines. I wouldn’t say that we’ve seen any bright shining light. It’s mostly a Detroit issue rather than an Asian or European issue. We’ve gotten to a flat spot, below where we were doing business three to four years ago. Hearst Magazines Senior Vice President Jeff Hamill: “We’ve gotten to a flat spot, below where we were doing business three to four years ago.” Big magazine companies are bringing multiplatform, custom marketing programs to automotive manufacturers that provide more of the one-to-one kind of approach they favor these days. We created an Infiniti design gallery for the Concours d’Elegance in Pebble Beach, California. We called it “Form Follows Emotion.” The design of the gallery was in Infiniti print advertising. We did ride-and-drives, in-gallery events and a design section that ran in several Hearst titles. We formed a “Form Follows Function” microsite. We were able to drive traffic to the site from our magazines. We introduced Infiniti to affluent consumers as a design-centric brand. Infiniti has reupped for 2008. We measured the traffic through the gallery; we had more than 6,000 high-end consumers. We measured the ride-and-drive. We put a response card in the magazine insert and measured traffic to the microsite. We did primary research on site, pre- and post-testing. What else? We did a large project for the Chrysler Sebring. It was a print unit that ran across a slice of magazines, with a consumer sweepstakes online. It was an online test-drive incentive. Has digital spending on auto ads offset the drop in print ad pages? Not for magazine brands. The digital dollars are growing so quickly in the automotive space, and I am fairly certain they are going to the bigtraffic digital sites. Are there still auto companies that just want to buy pages? Not so many. In a short period of time in the Q&A Hearst created this Infiniti design gallery. automotive space, all of our business will be integrated. What percentage of auto advertisers are asking for digital packages to go along with print ads? It’s 50 percent and going higher quickly. c What are you doing to win business? http://www.dodgejourneyofalifetime.com

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Automotive News - May 26, 2008 Bad times? Not for CEO paychecks GM seeks Volt tax break to avoid $40k sticker Ford's big cuts aim for a Honda-sized lineup Automotive News gets new marketing communications director Toyota pushes N.A. suppliers to match offshore prices VW predicts 5% U.S. sales gain Toyota plans 3 plants for hybrid batteries GM's American Axle strike tab: $2.82 billion Lawsuit in Florida targets congressman's dealership Orbiting the blogosphere Kia to build small cars in U.S. plant VW Mexico exec will run North American purchasing Fiat mulls 500 minicar for U.S. GM scraps big rwd sedans for Chevrolet and Buick Hyundai spends like never before to launch Genesis luxury sedan Surprise: Suzuki slides as fuel prices rise GM paid Walter Chrysler a whopping $600,000 a year Chrysler sends mystery shoppers to dealerships Toyota owes royalties on some hybrids GM, American Axle to resume output Ford predicts bigger demand for smaller engines in Escape This is Volvo? Ads sell chic, not just safety An overnight success in 50 years Obama's comments were out of line Japan does it; why shouldn't we? 25% is high, but Chrysler is wise to revisit SCORE Safety efforts must focus on the driver Blame the dealer for poor service Don't judge Ford quality by just one car Ford quality is best in many years Mitsubishi considers piggybacking with Caterpillar suppliers to cut costs Nissan to make lithium ion batteries 'Boss Ket,' Connery inspire Tim Jackson Germany leads rise in Europe sales Court: Buyers must act in good faith to win lemon law damages Nissan wants suppliers to reduce utility bills Bajaj: From scooters to autos The next $2,500 car? Infiniti will look different, add engine power in Europe Lamborghini boss wants to keep the big engines Lamborghini ups ante in 'entry' supercars Continental exec: We're done selling VDO assets Honda plans Fit hybrid Outgoing Visteon CEO to receive $2.5 million Audi production chief: Cooperation with Porsche will grow Picture this RV shipments fall in March M-B will buy Chrysler studio Supplier personnel VW expects to reap big share of U.S. diesel market Valeo CEO Morin: Pass rising costs to consumers Suppliers to the 2008 Nissan Altima Dealers Auction workshops demystify Web buying April used-vehicle prices: Light trucks fall and cars rise Volvo certified plan offers free satellite radio Mulally: Full speed toward smaller Toyota plans credit card Sanfilippo switches agencies International idles plant Honda Pilot starts at $28,230 Plastech plans assets auction What counts GM's 2-pronged strategy for Calif. rules: If you can't beat 'em . . . meet 'em New wheels for the cop shop The cost of luxury? For Hyundai, it would have been $2.5 billion New tools allow early design input from consumers Lexus in the sky with carbon: How ex-Beatle's PR effort tanked Buy an '08 . . . get a .44 $4 gasoline gives new cachet to aging econo-beaters Time tips its hat to Tata Car marketers: Magazines must widen ad reach Automakers seek 'one-to-one' approach to magazine ads Auto ads go to the movies Here's the next big thing: Ads tailored to you GMC courts women with Acadia

Automotive News - May 26, 2008

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