Chrysler Dedicates 30% of Advertising Budget to Digital
In a move that parallels General Motors’ decision earlier this year, Chrysler Chief Marketing Officer Deborah Meyer said yesterday that the auto manufacturer has dedicated 30% of its advertising budget to digital advertising.
While speaking at the Interactive Advertising Bureau’s Mixx conference in New York, she cited the auto industry’s economic woes as one of the reasons for the shift.
“Every dollar has to work 10 times as hard as it used to do,” Meyer said. “This is why [the shift to digital] is moving at an incredibly rapid pace. There’s no fat left in the system.”
The auto industry is not the only industry where economic concerns have forced advertisers to re-think ad spend. As the Wall Street Journal reported earlier this month, “Spending on Internet advertising is climbing at a healthy clip — rising 20% in the U.S. in the second quarter.” But while some companies have gone online as a conservative move to maximize ad spend, others are using the medium to capitalize on consumer concerns in an uncertain economy.
Folgers recently announced a new campaign focusing on coffee aficionados who have turned to brewing at home in an effort to cut costs. “Given the economy, there is an opportunity to underscore what Folgers offers with people who may have been going out more frequently than they do today,” said Marnie Kain-Cacossa, Executive Vice President and Global Equity Director at Saatchi & Saatchi New York.
In additional to traditional media, web ads will focus on Folgers’ rich taste, enhanced by a new roasting process where the beans are fully dried before roasting. “People may be willing to forgo the high end but don’t want to have a bad cup of coffee either,” said coffee industry analyst and consultant Judy Ganes. “When people are trying to watch their wallets, they may be willing to give this a try.”
Consumers aren’t the only cost-conscious spenders looking to cut spending. As corporations like Chrysler shift budgets online, look for more in all industries to follow.
Rachel
Tags: Ad Spending, Budget, Chrysler, Economy, Folgers, Online Advertising
