Car commercials on television are annoying, especially now that ad agencies seem to have lost the creativity that once distinguished car TV spots from commercials for products such as detergents.
But the problem lies not only with ad agencies. It also stems from automakers’ strategy of replacing, at least in the U.S., Tier 1 campaigns—which are designed to build brand awareness or introduce a new model—with Tier 2 campaigns focused on sales. These campaigns are developed in partnership with regional dealerships.
Meanwhile, declining sales have reduced automakers’ advertising spending as a share of total U.S. ad spending, from 13 percent a few years ago to about 10 percent today. Yet automakers’ spending on linear TV advertising for Tier 2 campaigns has reportedly increased by 40 percent so far this year.
Fortunately for U.S. TV stations, overall advertising continues to grow, and other consumer product categories have filled the airtime left vacant by automakers.
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