Mercedes to focus on direct instead of TV

by Mark Banham, Media Week 02-May-06

Mercedes-Benz is to shift most of its £3m TV spend into direct marketing in a further emphasis of customer relationship marketing over above-the-line advertising, and will focus on technologies such as e-mail and SMS marketing to drive footfall to their dealerships.

The move will mean that the advertiser is unlikely to transfer any
budget to TV for the rest of 2006. The car owner spent £3.3m on TV
advertising last year, according to Nielsen Media Research.

Mercedes launched its Viano luxury MPV in January, using a direct mail

campaign developed by advertising agency Claydon Heeley Jones Mason. The
campaign was mailed to 50,000 potential prospects to encourage the
take-up of test drives of the new launch model.

Mercedes also moved further into mobile marketing by establishing its
first permanent mobile site, acting as a destination for its text and
WAP activities. The new focus is believed to encourage additional
footfall to the UK's Mercedes dealerships and deliver more
return-on-investment.

Mercedes spends the majority of its annual media spend, £9m, on
outdoor advertising. The car manufacturer also spends £2.2m on its
online spend. At the end of last year Mercedes appointed Agency Republic
to handle its digital marketing activity.

The latest Bellwether report showed the shift to direct and digital
media out of traditional above-the-line formats. The measurability of
both media has caused a sea change in the way clients allocate budget.
Internet advertising was the only sector to show increases in budgets
during the first quarter of 2006, with 25.8% of marketing budgets
reporting an upward revision. Direct marketing went through only a
marginal decline, but still fared relatively well against other
above-the-line sectors.

BJK&E handles the Mercedes media account. Neither BJK&E or Mercedes were
available for comment regarding the shift in focus.