There has been a consistent thread in discussions on Swedespeed that Volvo needs to spend more money on advertising in the US. According to this WSJ article, they are now doing more with less by exploiting addressable TV advertising.
Volvo says it has started delivering TV ads to people who are probably in the market for cars--and actually prefer the kind of luxury cars Volvo makes. And it says it has the data to prove those laser-targeted TV ads are driving sales.
Specifically, over the past year-plus, Volvo and its media buying partners, Mindshare and the advanced TV ad specialist group Modi Media, have been running TV ads specifically aimed at about 12 million households. These households have members that are likely to be buying cars in the next few months, based on data from companies like Experian and Acxiom, as well as registration data from the Department of Motor Vehicles, Volvo and its agencies say.
Besides employing this digital-style targeting, Volvo and its partners say they've been able to track whether the specific households that get exposed to these ads go out and actually buy cars.
The carmaker won't say how many cars it has sold as the result of this tactic but, throughout this effort, Volvo and its partners have run test and control groups to gauge the effectiveness of the targeted ads. According to Bodil Eriksson, executive vice president, marketing, brand & communications at Volvo Cars North America, the addressable TV efforts have demonstrated a 22% lift in sales in the markets the campaign is running.
Thus, as this campaign has progressed, Volvo has pumped more money into addressable TV and taken ad budgets from national TV. The brand now expects to spend “several million dollars” on addressable TV--the industry term for delivering TV ads to specific American households based on their demographics and shopping preferences--this year, or about half of its TV ad budget, Ms. Eriksson said.
“You always have this constant argument at a company like ours, ‘does marketing work or not?' and it's really tiring,” she said. “This [tactic] works so well for us. So we've taken down our TV spending a lot as it's gotten too expensive for us.”