The BMW Group spent $300 million on advertising in the United States in 2019, resuming its upward trend after a sharp decline compared to the annual growth in advertising costs that began in 2014 and continued until 2017. BMW, along with other well-known European automakers, was one of the companies that spent the most on U.S. TV advertisements in that year.
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Summary
A component of Bayerische Motoren Werke AG is the BMW Group. In the previous year, they spent less than $100 million on advertising across digital, print, and national TV. In the previous year, they spent money on premium ad units and ran advertisements on more than 250 different media properties in a variety of media formats. In the last year, the BMW Group has introduced and advertised 17 new items.
In the marketing departments of the BMW Group and associated agencies, we have 7 people listed.
Tesla makes no advertising expenditures. Where BMW, Toyota, Ford, and Porsche Spend Money on Digital Advertising
According to a recent BrandTotal analysis, Tesla doesn’t spend any money on advertising. However, rivals like Toyota, BMW, Porsche, and Ford spend a lot of money on the popular social media sites, including Facebook, YouTube, Instagram, and Twitter.
For instance, 62% of Toyota’s social media expenditure is allocated to Facebook. Porsche, on the other hand, spends only 14% of its spending on Facebook and prefers to use YouTube for 47% of its primary social media platforms.
According to BrandTotal, for a 30-day period, the company examined “all sponsored and organic social ads from Toyota, BMW, Ford, Audi, Honda, Nissan, Infiniti, Tesla, Lexus, Honda, Cadillac and Porsche in the U.S.
The findings show that Facebook receives the majority of automobile advertisements. However, YouTube is no slouch either, consuming anything from a third to almost half the expenditure for companies like Honda, Ford, Cadillac, and Porsche, and more than half for Audi, at 54%.
With brands like Infiniti, Porsche, and BMW spending 30 to 40 percent of their digital advertising budgets on Instagram, the social media platform dominates the automobile advertising market.
Only Cadillac and BMW dedicate a sizable portion of their advertising budgets to Twitter, with only BMW exceeding double digits at 20%.
It’s interesting to note that Volkswagen and Nissan spend the most money on Facebook. BrandTotal claims that they completely disregarded the other important social media platforms and concentrated all of their marketing efforts on Facebook.
According to Alon Leibovich, co-founder & CEO of BrandTotal, “Facebook reigns supreme for paid marketing among these four digital channels for big autos.” Our research demonstrates that while YouTube and Instagram are primarily utilized to reach younger audiences, Facebook is the platform that companies rely on to engage older audiences.
Over two million of Tesla’s engagements were organic, particularly on Instagram, where 55% of its social media activity took place. Tesla is also active on Twitter, at least organically, where they spend 11% of their time. Naturally, Elon Musk, the company’s CEO, has over 26 million followers on Twitter.
Leibovich asserted that “strong brands are able to command high engagement even without a big digital marketing budget.” “When compared to other auto brands spending money on their digital advertising, Tesla has great engagement numbers. This might be due to the engaged and active Tesla enthusiasts who are already using Twitter and other social media sites. Given their extensive organic reach, the brand does not feel the need to invest in sponsored social media marketing.”
However, one could argue that given Tesla’s performance in the previous quarter, the business might wish to participate in a little sponsored promotion to boost sales.
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How much does Volkswagen invest in marketing?
Volkswagen invested $5 billion internationally in R&D. It is $7 billion in value. The amount spent on advertising in 2019 will be the same as it was in 2018. The German automaker claims to have invested 777 million dollars in total in 2019. In the United States, the expense of advertising is in the billions of dollars.
In a heated advertising battle between luxury brands, Audi overtakes BMW.
In 2014, the two companies spent roughly the same sum on TV advertising, but Audi purchased nearly 5,000 more national airings across more than twice the number of networks.
Audi is to invest an additional $2 billion over the following five years, according to a recent report in MediaPost, to create new models of electric sports cars and CUVs.
Let’s take a look at how the two companies fared in 2014 in terms of national U.S. TV ad spending and online activity as a prelude to that conflict.
2014 saw close to $200 million in expected national TV advertising expenditures from both Audi and BMW. BMW actually spent more on television than Audi ($196.6 million versus $196.6 million), but Audi spent its $195 million on more national commercials, more networks, and more TV series.
Audi purchased 19,725 more national airings over more than twice as many networks than BMW, at 91, for a total of roughly 5,000 more spots. Only 14,606 BMW advertisements were broadcast across 39 networks last year.
In terms of the total number of programs where their advertisements appeared, Audi beat BMW. While BMW focused on more conventional advertising playing on less than 1,500 shows, Audi focused on commercials starring Ricky Gervais and the Doberhuahua.
However, Audi really shone in the digital sphere. Audi outperformed BMW by a factor of 10 with 20 million online views from its advertisements.
Audi tracks nearly 500,000 Tweets, Facebook Likes and Shares, YouTube Comments, and other forms of social media engagement.
The digital Share of Voice for Audi, which measures the proportion of online activity in an industry that can be attributable to the brand, is at 7.75% in 2014, compared to BMW’s 0.98%.
Audi definitely spent its advertising spend more wisely than BMW overall. It is unclear if it will allocate any additional funds for advertising in light of its $2 million EV campaign.
Following the success of its recent marketing and advertising campaign and Audi’s alleged plans to unseat BMW as the market leader, BMW is taking creative measures to fight back. Following a 4-year absence, BMW will announce its return to the Super Bowl and advertise its all-electric BMW i3 during the broadcast of the event.
The CEO of iSpot.tv, which monitors live paid TV content and associated earned digital activity on social, search, and video, is Sean Muller.
BMW makes “hundreds of millions” of dollars in its digital transformation.
The automaker will spend hundreds of millions of dollars per year for the next five years in an effort to give customers a seamless digital experience.
In order to provide the finest customer experience in the premium vehicle industry, BMW has committed to investing hundreds of millions of dollars in marketing each year through 2025.
BMW will expand on the contact-free sales procedures that were created last year during the Covid-19 outbreak as part of a new sales and marketing strategy.
Sales personnel may now provide customer service and sell BMW and Mini vehicles anywhere in more than 60 countries, and these services will be made available to retail partners in other regions during 2021.
With the impending release of the iX and i4 electric versions, customers will get their first taste of the new platform.
Nota claims that it will be able to target customers very precisely thanks to the digital system. “Generating a significant volume of highly qualified leads, clients that are interested in our vehicles, is a very key element in our marketing strategy,” he says. “We can deliver the appropriate message to them specifically.”
The Engine, BMW’s “agency constellation,” which debuted last year, will support this targeted marketing strategy. MediaMonks, the Serviceplan Group, and Berylls Strategy Advisors make up the partner network. BMW formerly collaborated with over 80 agencies, and Nota claims that the investment in a more focused strategy is “beneficial to our entire portfolio.”
Did GM, BMW, Kia, and Nissan’s large EV advertising budgets have a “Super Bowl Effect” on Tesla?
Many automakers continue to spend money on Super Bowl advertisements, while Tesla does not. However, the manufacturer noted a “Super Bowl Effect” that saw a rise in American orders the day after the game in its quarterly financial report.
According to Tesla, U.S. gross orders on that day, February 13, were larger than they had ever been thus far in 2022.
The report makes no assumptions regarding the reason for the increase in orders, although it’s important to note that this year’s Super Bowl had more EV advertisements than ever before, albeit none from Tesla. Advertisements were run by General Motors, BMW, Kia, Nissan, and the charging-equipment manufacturer Wallbox. First Super Bowl ad from Polestar was released.
So possibly the volume of advertisements sparked interest in EVs generally and directed some customers to the brand most closely identified with them. Although it’s sad for the manufacturers that spent millions on Super Bowl advertisements, it may indicate that there is greater interest in electric vehicles.
Tesla hasn’t created any conventional advertisements, but that hasn’t stopped fans from doing so. No automaker can equal the attention that Tesla has garnered without using conventional advertising, despite the fact that the Porsche Taycan inspired its own unofficial Super Bowl ad. Tesla has profited from a high-profile CEO like Elon Musk and a carefully constructed image of Silicon Valley tech shine in addition to fans spreading the word. However, conventional manufacturers are now making an effort to catch up.
Automakers produced a wide variety of “compliance” EVs five years ago, but they were hardly ever promoted outside of the lease markets they were intended for.
So be it if Tesla gets sucked into the Big Game EV obsession. How do you envision more Americans learning about EVs and Tesla? Tell us in the comments section below.
How much money do automakers spend on marketing?
The amount of money the American car sector will spend on digital advertising in 2020 has been estimated at $12.42 billion. The coronavirus pandemic-related decline in 2020 is anticipated to be followed by a rebound in the industry to levels higher than those seen in 2019.
How much does advertising cost for a car?
Dealerships are investing more money than ever before in digital marketing. 55.4% of a dealer’s advertising budget goes online, according to NADA’s 2017 Annual Financial Profile of America’s Franchised New-Car Dealers.
This reveals that a large number of dealers either work with internal teams or collaborate with outside companies that don’t carry out strategic digital marketing initiatives.
How much money does Porsche invest in marketing?
A subsidiary of Volkswagen Group AG is Porsche Cars North America. In the previous year, they spent less than $100 million on advertising across digital, print, and national TV. In the previous year, they spent money on premium ad units and ran advertisements on more than 250 different media properties in a variety of media formats. In the last 12 months, Porsche Cars North America has introduced and promoted 4 new products.
Porsche Cars North America has 3 marketing employees on file, and their advertising agencies have 4 employees.