LOSE THE AD AND GET A SHOW

According to the full-year forecast released today by TNS Media Intelligence, total U.S. advertising spending is expected to increase 2.6 percent in 2007 to $153.7 billion. This anticipated gain is the smallest since the media economy emerged from its 2001 recession and follows estimated advertising spending growth of 3.8 percent in 2006.

The only reason I bring this up is because of this article from The New York Times, which describes a new show on Speed Television that centers around the Toyota FJ Cruiser.

Sure, we’ve all read about branded entertainment and product placement…and this story is no different. Working with its agency (Saatchi & Saatchi) and @Radical.Media, Toyota created a show called “Two Roads to Baja” on the fast-is-everything cable channel. Okay. Good job. You get the new media landscape, Toyota (I admit, I’ve been giving the brand much love lately, but rest assured this is no case of a fake blog).

Fj_cruiser

No, the real point to this post is found in the last paragraph of the NYT article:

Toyota sold 55,809 FJ Cruisers last year, compared with a goal of 46,000. The goal for 2007 is 60,000. Ad spending last year totaled $2.8 million, according to TNS Media Intelligence, reflecting the absence of TV commercials.

Just a moment. Let me catch that. According to these numbers, it cost Toyota US$50.17 for each FJ sold? Am I getting my math right? Can someone help me out here? Fifty bucks to sell a US$25,000+ car??!?!?! I’m a creative director, so I really don’t pay much attention to the media stuff (LOL!). But can this be right? If so, why would anyone buy a 30-second spot ever again?

One comment

  1. Uniqueseller · · Reply

    The successful selling of any new vehicle raises many issues. The FJ Cruiser could have been attached to a multi-group purchase of high-end models? If so, the pull through campaign would cost less as the need to move units is based on selling other models. Also, the FJ Cruiser might have been created for a fleet application market opportunity. Smaller audience..lower marketing cost. My take is an under-the-radar introduction of a model that has no specific audience. The next marketing campaign will have a greater dollar value than $US50.17 for each FJ sold.

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