Ford decides ad payments are stupid

Ford CEO Jim Farley says there is little reason for automakers to bother to use traditional advertising campaigns for electric vehicles. Given how often the Ford logo looks on any screen I happen to be looking into, this would seem contrary to everything I was conditioned to accept. However, the company believes that EVs are already virtually sold, and executives say the Mach-E has been sold out for quite some time.

“I’m not sure we need public service announcements for [electric vehicles] If we work, “Farley said at the Bernstein Strategic Decision Meeting Wednesday.

First reported Bloomberg, Blue Oval has chosen to copy Tesla’s playbook and abandon traditional advertising. Farley himself states that EV brands are saving bundles by avoiding dealer models (which many legacy manufacturers are currently trying in Europe). Ford believes that reducing marketing efforts will help offset some of the $ 50 billion it plans to spend on EV development by 2026.

The CEO also said he expects Detroit automakers to tweak their relationships with US dealers to focus on post-sale services.This is also an ape to the Tesla model and some As outlined in a recent article, the industry is currently looking at drastic changes... But the simplified version is that there is integration / vertical integration and there are many of them.

“Our dealers can do that, but the standards will be cruel,” Farley said. “Their business has changed a lot and there will be lots of winners and losers, and I believe in integration.”

from Bloomberg:

Ford is one of the largest advertisers in the United States, spending $ 3.1 billion last year promoting its products. However, Farley wants to emulate Tesla, which dominates the US market for EVs, even though he didn’t buy traditional ads.He said Ford didn’t have to promote the new one F-150 Lightning Plug-in Pickup He stopped advertising the Electric Mustang Mach E because it was sold out for two years.

“We spend $ 500 to $ 600 on public service announcements. Get rid of everything,” Farley said. “If you’ve seen Ford Motor Company advertise a Super Bowl on an electric car, sell your stock.”

There are several ways to see this. You can see that Tesla has no marketing budget and is aware that it’s doing well for social media hype and the press that hasn’t talked about anything else in the last few years. I can do it. You can spend money to promote cars that aren’t currently available, or you can think of this as a retreat from EV space.

I can’t put my finger on it completely, but something tells me that many legacy car makers aren’t working on EVs as much as originally claimed. The industry has spent billions of dollars on “mobility projects” that have helped bring EVs to market. However, it is speculated that most of that money was spent on building data centers, improving vehicle connectivity, and purchasing auxiliary technology companies that manufacturers expected to make the next big leap for self-driving cars. It is dangerous.Since then, self-driving cars have been promised Firebird II was filmed in 1956 cruising the fly-by-wire highway... But the real application is always “a few years away.” Even today, technology seems a bit tricky, unreliable, and has so much legal implications that lawyers agree who will ultimately be responsible if something goes wrong. But it will probably take years.

But this did not stop selling these technologies before the car makers existed. Nor did they prevent them from promoting some of the advanced driver assistance systems that emerged as a direct result of research.

Electric cars have an excellent track record overall and were even commonplace as runner bouts in the early cities of the car. They are specific and can be purchased from a variety of brands today. But they also spend a lot of money on the industry and will continue because of the nature of development.Ford probably understands this better than anyone and chose to hedge his bets in the meantime. Not yet capable of manufacturing Flood the United States with EVs.

From this angle, the high advertising budget devoted to all-electric vehicles seems like a small benefit.

Despite significant progress made by EVs in certain markets, the United States is usually at the bottom of the list, often with the help of government orders. Meanwhile, the world is beginning to face a situation where procuring the materials needed to manufacture batteries is expected to be significantly more difficult and expensive. Ford believes there will be no benefit to EV marketing until another EV is available, and wanted to do a lot from this issue to get media coverage like Tesla on their own. rice field. Well, I might add.

[Image: Ford Motor Co.]

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Ford decides ad payments are stupid

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