GM, Jeep and Kia among the only automakers advertisers
General Motors and Netflix have teamed up to create a 60-second commercial starring actor and comedian Will Ferrell driving GM electric vehicles in popular Netflix shows and movies to promote the streaming service using more electric vehicles in their productions.
Automakers, which have historically been one of the biggest Super Bowl advertisers, are basically bypassing Sunday’s NFL championship game to save money or spend advertising dollars elsewhere.
The only automakers expected to advertise during Sunday’s game between the Philadelphia Eagles and Kansas City Chiefs on Fox are General MotorsKia and stellantisRam and Jeep brands. Porsche has said it will release a video shortly before the game in collaboration with Paramount.
According to Kantar Media’s Vivvix, broad resistance has changed dramatically from last year, when the auto industry represented the largest segment for Super Bowl advertising at $99.3 million. This is an increase of more than $30 million compared to 2021, when web, media and film companies outperformed the industry.
The decline in automotive advertising this year is due to companies investing billions of dollars in electric vehicles or trying to save cash in preparation for a potential economic downturn. They also continue to struggle with supply chain issues.
The average cost per 30-second commercial during last year’s Super Bowl was $6.5 million, more than $2 million more than in 2016. That cost is now approaching $7 million, according to Kantar Media.
“This has less to do with the Super Bowl itself than with specific issues in the auto industry,” Eric Haggstrom, director of business intelligence at Advertiser Perceptions, told CNBC. “The auto industry has been hit by supply chain problems, inflation eating into consumer budgets, and rising interest rates that have sent car payments skyrocketing.”
Haggström noted that several automakers have cut advertising spending in recent years as a result of fewer products to sell due to limited inventory caused by supply chain issues during the coronavirus pandemic. Newer automakers also traditionally advertise less or no advertising at all as they try to emulate the Tesla model without advertising, Haggstrom said.
During last year’s Super Bowl, eight car brands or companies were advertised, including the returning GM and Kia companies. Confused car salesmen Karvana And vroom, which were advertised during last year’s game amid record demand for used cars, are no longer making a comeback. And start-up Polestar, whose ads were a success in the 2022 Super Bowl, said it would not be advertising this year either.
For the 10th year in a row, auto accessories maker WeatherTech has released a 30-second ad. The Illinois-based company is the oldest auto business to advertise constantly during the big game.
Advertisers say they are seizing the opportunity to attract an audience that is expected to be around 100 million viewers. The game has historically been one of the most watched events of the year, offering advertisers the opportunity to capitalize on viewing audiences amid shrinking TV audiences.
60-second GM commercial with actor and comedian Will Ferrell driving GM electric vehicles on popular Netflix shows and movies to promote the streaming service’s upcoming efforts to include more electric vehicles in its products.
“This is an important moment,” GM marketing director Deborah Wahl told reporters during a briefing on the ad. “Doing something like that is completely different.”
Two years ago, Ferrell also appeared in a GM Super Bowl commercial promoting electric cars.
Those who did not return mostly attributed the decision to business priorities or available products and capital. Toyota Motorone of the leading Super Bowl advertisers in recent years, said his product release plans are not aligned with this year’s game.
“We’re looking at the Super Bowl very strategically, and we want to make sure we have a target for the Super Bowl,” Lisa Materazzo, Toyota Group vice president of marketing, told CNBC at this week’s event for the Chicago Auto Show. Show. “We definitely think the Super Bowl has a place. This year it was not the right time or place for us.”
Hyundai Motor, an emailed statement said the decision not to advertise was “based on business priorities and where we believe it would be best to allocate our marketing resources.” Audi, which last advertised in 2020, said it is “focusing on other efforts as part of our commitment to electrification and sustainability.”
stellantis, formerly known as Fiat Chrysler, has been one of the most productive advertisers for over a decade and is returning after a year-long hiatus. The company’s marketing director, Olivier François, is known for bringing in top talent including Bruce Springsteen, Bill Murray, Clint Eastwood and Eminem.
Stellantis did not release its ads, while GM, Kia and WeatherTech released their ads earlier this week.
In Kia’s 60-second “Binky Dad” commercial, a father goes viral for racing for his child’s “binky” while driving a 2023 Telluride X-Pro SUV. It is set to “Gonna Fly Now” from 1976, known as the Rocky soundtrack. Uniquely, the ad features three alternate endings that will be available exclusively on TikTok.
This advertisement drew some criticism online, as Kia and its parent company Hyundai were criticized for at least four of their vehicles. vendors reportedly violate child labor laws. Both Hyundai and Kia have condemned the practice. Reuters this week informed the parent company is in talks with the US Department of Labor to address issues related to children working in its US supply chain.
The 30-second WeatherTech commercial promotes the company’s U.S.-made products and features bank executives and others criticizing the company for its American investments and manufacturing.
The Porsche ad is a collaboration with Paramount for Transformers: Rise of the Beasts, which is due out this summer. This is the second year of such cooperation after last year’s advert for Top Gun: Maverick.
Haggstrom said there was a general “caution” in the auto industry about advertising.
“Do they really look at what is the value of advertising today? How will it affect my income, how will it affect my entry into the market,” he said. “We’re seeing a general liability trend in consumer advertising.”
– CNBC John Rosewear contributed to this report.