Automakers' marketing spend appears to have fallen less than some observers expected last year.
Every year in 2022, the automotive industry will experience production disruptions due to economic woes, inflation, and supply issues. A year like this can often send automotive marketing into a tailspin.
But marketers, including General Motors . , Hyundai MotorCo. and Kia America Inc., three companies with strong EV sales, actually increased marketing spend in the first half of last year, according to research by Magna, a media investment firm that is part of Interpublic Group Cos. media brands. The company does not yet have data for the full year.
According to research firm Nielsen, total spending on nationally televised automotive advertising fell 11.6 percent in the first three quarters of last year.
However, the reduction could have been more significant because automakers didn't have to announce limited vehicle sales, but rather could have saved money, according to Vincent Letang, executive vice president of global market research. Great .
“It was a very big sellers market last year,” Letang said. "In this context, one would expect a significant reduction in advertising costs."
This year's emphasis on brand marketing and electric vehicles suggests that car sales can be boosted with improved products. Magna estimates the automotive category will grow for the first time in several years through 2023.
Retailers promoting EVs will account for 24 percent of automakers' TV spending in 2022, up from 13.8 percent in 2021, according to ratings firm iSpot.tv Inc.
Kia continues to spend through 2022 to support future demand, said Russell Wager, vice president of marketing at Kia Americas.
"We're not taking the gas pedal off as we look at the shift to electric cars," Weiger said.
Last year's Super Bowl marked the launch of the Kia EV6, and while it may not have been the best-selling car, the company typically devotes a huge marketing effort to it.
"You don't put a car in the Super Bowl to sell 20,000 – that doesn't make sense," Mr. Wager said. This is what you do when you try to tell people that we are a legitimate EV brand and we want people to mention us for not only the EV6, but the upcoming EV9 and other products as well.
The brand has launched TV ads for the premium EV6 GT, which is usually only promoted through digital, print and social media, to reach affluent car enthusiasts.
“You wouldn't be on TV if you didn't create an interesting Halo brand,” said Mr. Weiger.
Kia will compete with the Telluride SUV at this year's Super Bowl.
Hyundai also said last year that it had "deliberately maintained" its profile across all marketing channels, including TV and digital channels.
“We believe ongoing engagement is critical to increasing email engagement and product awareness and building leadership in electrification,” said Angela Zepeda, Chief Marketing Officer, Hyundai Motor America. He said the company is running another EV-focused campaign on Jan. 29 during NFL conference championship games.
Of course, not all brands want to take their electric car offerings to the big marketing level. Ford Motor Co. CEO at an investment conference in June. Jim Farley has suggested that the brand spend more money on traditional marketing, saying customer promotion and vehicle upgrades are the best investment.
"We should be doing these, not Super Bowl commercials," Mr. Farley said. "If you see Ford Motor Company advertising our electric car at the Super Bowl, sell the stock."
In this aftermarket, automakers didn't have to spend as much on offering incentives, including low-interest financing or cash rebates, to entice consumers to buy cars, said Zach Creel, industry analyst for the digital automotive marketplace at TruCar.
“There has been a shift in what automakers are promoting or focusing on, and electric cars are a prime candidate for that,” Krele said. "Because automakers don't have to push car sales, they can focus on the cars consumers want to know more about."
Email Megan Graham at megan.graham@wsj.com
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