Auto Majors increases Ad spend

Year 2010 will always be remembered as the year of growth in automobile industry. The year faced a series of launches in all segments, starting from small sized hatchback to supreme class luxo barge. The scenario is expected to continue in next year as well, and automobile majors have already pulled their sleeves up to get the best out of it. The car manufacturing companies have prominently increased their advertising budgets and other promotional expenses. The companies have planned a good number of launches for the year 2011 and have planned good for their promotion and advertisement as well.

The companies have increased their advertising budgets by striking 20% in last 6 months owing to many new launches, increasing competition and year end inventories. And now Automobile giants like Mahindra & Mahindra, Tata Motors, and Maruti Suzuki are investing in the multichannel media promotion, radio advertisements and also online marketing. The major reason behind the big investment is to attract the consumers and make the product familiar to them. In the third quarter of financial year 2010, the Indian economy grew by 8.5 per cent which raised the ad spend by 76% in automobile industry. The biggest investment in visual media is made by Maruti Suzuki India and now it has come up with an innovative advertisement of its all new saloon, Maruti Suzuki Dzire. At present the company is broadcasting popular ads of its 2 models- Maruti Suzuki SX4 and Maruti Suzuki Zen Estilo.

Shashank Srivastava, Maruti's chief general manager of marketing during an interview commented that an investment of Rs 20 crore is made on the December campaigning which is 30 per cent more than that of other months. He also said that company's expenditure on visual media is to clear the backlog of year 2010.

Many other automobile majors are spending rigorously on advertising so that they could clear the 2010 backlogs and make space for upcoming fresh stock. The industry experts says that because competition is increasing at an exponential rate and new launched have become a common scenario, advertisement become very essential as it will increase the brand recall among customers.

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