Ad Intelligence Brief Automotive Advertising Q2 2017 (1).Pages

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Ad Intelligence Brief: Automotive Advertising, Q2 2017 The TV advertising data covered in this report provides a look into the massive set of granular, real-time TV campaign metrics that is freely available for thousands of brands at insights.alphonso.tv

This month, we take a look at advertising strategies and spending from the top 10 advertisers in the automotive sector from April through June of this year, with a deeper dive into the trends set by the biggest spenders: Ford, Chevrolet and Toyota. Combined, those three giants made up more than a quarter (28%) of spend in the category, representing a similar amount (26%) of equivalized units airing on television in the U.S. Overview. Overall spending in the category for Q2 is estimated at $102 million, with Hyundai close behind the top three in terms of spend. Differences in TV ad campaign strategy become evident when looking at share of voice by equivalized TV units (the equivalent number of 30-second spots); where Chevrolet becomes the clear leader in terms of sheer unit quantity, Subaru takes the number 2 spot, and Ford, the second-highest spender, doesn’t even rank in the top 10. Let’s take a look at how this played out, uncovering some of the ad airings data for the top three spenders.

Share of Voice Equivalized TV Units: Share of Voice Spend: April-June 2017 April-June 2017

26,516 $102

18,282 $82 11% 11%

8% 9% 101,763 $367 39% 42% 16,635 $77 7% 8% 6% 14,516 7% 6% 5% $63 4% 4% 4% 5% 4% 13,839 4% 5% $51 4% 4% 4% 10,179 $40 9,421 10,173 $40 $44 $44 9,427 9,487 $40

Chevrolet Subaru Toyota Lexus RAM Jeep Toyota Ford Chevrolet Hyundai Volkswagen Subaru Honda Nissan GMC Hyundai Others Honda Inﬁniti Lexus Kia Others The Big Three Spenders: Airings by Network and Daypart For networks, there was overlap across the big three, but also some key differences. Spanish-language programming was prominent across the board, with Ford and Toyota both including NBC Universo and Telemundo. All three aired heavily on ESPN Deportes. Sports was also big for all three, with Chevrolet hitting the most sports networks in their top 10. Toyota skewed more towards a younger entertainment-oriented audience, and Ford hit the major broadcast networks the most. National Airings for the Top Three Automotive Ad Spenders - Top 10 Networks

2,000

1,000

No. of Equivalized TV Units Equivalized No. of 0 Fox Sports 1 MLB Network ESPN Comedy Outdoor Centric Sportsman The Weather OWN NBC Sports DEPORTES Central Channel Channel Network 2,000

1,000

No. of Equivalized TV Units Equivalized No. of 0 ESPN NBC Universo Aspire Telemundo History ABC NBC Fox Sports 1 FOX CBS DEPORTES

2,000

1,000

No. of Equivalized TV Units Equivalized No. of 0 ESPN MTV MTV2 Nickelodeon Centric Comedy Animal Planet Telemundo NBC Universo CBS DEPORTES Central SoV by Equivalized TV Units Equivalized Ad Units by Hour of Day Chevy Ford

27,000 26,516 10%

7.5% 16,635

13,500 5% 8,106 No. of Equivalized TV Units Equivalized No. of 2.5%

0% 12:00 AM 4:00 AM 8:00 AM 12:00 PM 4:00 PM 8:00 PM

Hour of Day

Looking at the rankings in terms of equivalized TV units, In comparing the spending strategy between the two, it’s easy to see that Ford had far fewer airings than Chevy, Ford invested far more heavily in higher-priced prime even though Ford spent more than Chevy in the same time inventory, whereas Chevy spread their spend more time period. broadly across lower-priced inventory throughout the day and overnight. The Big Three Spenders: Featuring a Model

Next we looked at the specific vehicles each of the top three advertisers marketed most heavily during Q2. For Chevrolet, it was the Chevy Equinox, with an estimated $30 million in TV budget, making it the most advertised vehicle overall, in terms of spend. The Equinox garnered 39 percent of the carmaker’s overall TV ad budget. By comparison, the Toyota Corolla was Toyota’s most marketed model, comprising 21.5 percent of Toyota’s TV spend for the same time period. Like Chevrolet, Ford put most of its budget behind a compact sport utility vehicle, the Ford Escape, which was 18.1 percent of the Ford budget, equating to just under an estimated $15 million in TV spend.

Chevrolet: Chevy Equinox

Chevrolet Equinox Other Chevrolet Vehicles $30.23 39.1% $47.04 60.9% 1 Toyota Corolla Ford: $21.97 Other Toyota 21.5% Ford Escape Vehicles $80.33 78.5% Toyota: Toyota Corolla

Ford Escape $14.77 Other Ford 18.1% Vehicles $66.95 81.9% 3 2 Truck Advertising: GMC Breaks into the Top Three

One size doesn't fit all across vehicle segments, ranging from sedans to SUVs to compacts to trucks. We dove deeper into the truck segment in particular to uncover some differences in the tactical approaches to TV ad spend, on a national level (we did not consider regional buys in this report). This part of our analysis brings into focus Q2 ad airing data for the marquis trucks in each of the big spender’s lineups, the Ford F-Series, the Chevy Silverado and the Toyota Tacoma and Tundra. We looked at how TV spend for these models compared to truck advertising from GMC, Nissan, and Honda. Chevy easily eclipsed all others in spend, accounting for 61.7 percent of the $19.7 million in national TV spend for trucks. But rather than Ford or Toyota, it was GMC who spent the second most, advertising the Denali and Sierra, investing an estimated $3.68 million. Ford spent $3.23 million, and Toyota’s ads for the Tacoma and Tundra accounted for only $0.26 million.

National TV Ad Spending: Trucks

$0.26 1.3%

$0.13 0.7%

$0.20 1.1%

$3.68 18.7% Chevrolet Ford GMC Honda Nissan Toyota $3.23 $12.13 16.5% 61.7% Truck TV Spend by Daypart Most of the carmakers spent their biggest share

$9.0 during prime time. However, GMC was the notable exception, spending slightly more during early $8.0 morning (5-10AM) than prime time to garner a

$7.0 share of voice advantage during that daypart.

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0 Overnight Early Morning Day Time Early Fringe Prime Time Late Fringe (1AM-5AM) (5AM-10AM) (10AM-4PM) (4PM-7PM) (7PPM-11PM) (11PM-1AM)

Chevrolet Ford GMC Honda Nissan Toyota

Sports and Trucks Sports networks play heavily into truck advertising. ESPN was the top network, in terms of national ad spend for trucks. More than half of GMC’s spend was on ESPN. Fox and CBS were the two broadcast networks receiving the highest amount of truck spend. Across all networks, Chevy spent the most on Fox Sports 1, followed by Fox and ESPN. The Top Five Networks for Q2 Truck Ad Spending

Network Chevrolet Ford GMC Nissan Toyota Honda Total Truck

ESPN $1.14 $0.09 $1.98 - - - $3.21 FOX $1.37 $0.98 $0.09 - $0.18 - $2.61

FOX Sports 1 $1.72 $0.40 $0.07 - - - $2.20

History $0.50 $0.54 $0.06 $0.01 - - $1.11 CBS $0.29 $0.22 $0.40 - $0.02 - $0.93 Want more TV data? Run your own real-time analyses on your brand, your competitors, or your entire category at insights.alphonso.tv. About Alphonso Insights About Alphonso

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