Renault show their muscle and increase media spending by 67,9% in Q1 2012, are they?

In the Dutch market the media spending by some automotive brands seem to explode. Adfact reports that the overall total mediaspendings in the first quarter in automotive were 17,5% higher than in 2011. In total the automotive brands spent 87 m Euro in gross media value.

The Top 5 in quarter 1 2012 looks like this:

Brand Gross spendings +/-

  1. Renault 8,5 m 67,9%
  2. Opel 7,8 m 36,1%
  3. Citroën 7,5 m 54,2%
  4. Toyota 7,0 m 103,3%
  5. Peugeot 5,9 m -14,1%

automotive-online.nl reports that the main reason for the increase is the fact that car importers try to sell cars that will get a tax penalty after July 1st. By then the Dutch government is tightening the CO2 emission values. Although for some brands this could be the primary reason, it is definitely not the whole story.

The graph below shows an overview of the overall spending in Dutch media in the automotive industry in the years 2009 – 2012 (2012=2011 + 17.5%). The graph shows a consistent upward trend through the years.

The main reason for the upward trend can be found in supply and demand. It is a public secret that there is a disruptive situation in the media landscape. Consumers spend less and less time on newspapers, magazines and radio. They spend a stable amount of time on TV and an increasing amount of time on either their desktop, laptop, tablet or smartphone.

Marketers of automotive car brands are aware of this trend and are increasingly shifting budget from print media to TV and digital. The demand rises. TV stations have a hard time delivering the requested GRP’s, which causes prices to go up. In the internet media the marketers of car brands focus primarily on display advertising. The consumer however is moving away from portals and websites, which are serving these display banners. They are spending an ever increasing amount of time on social media. The high demand in display gives publishers a hard time to deliver the requested views.  Result: Prices go up and car brands need to increase their spending to get more or less the same attention as before.

There seems to be a spiral of ever increasing budgets. The question is, are Renault and the others really showing muscle or are they just in a ratrace and unable to break the pattern in the way they are buying media and choosing media channels? Time will tell.

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