ANALYSIS: BRAND SPEND ANALYSIS - A new ad strategy may be on the cards if BMW is to repair its damaged image

BMW’s decision to sell Rover has put the German motor manufacturer in the media spotlight in the UK. There is no doubt the Rover affair will affect BMW’s advertising expenditure and brand strategy over the coming year. Adspend has already dropped in the first two months of 2000.

BMW’s decision to sell Rover has put the German motor manufacturer in

the media spotlight in the UK. There is no doubt the Rover affair will

affect BMW’s advertising expenditure and brand strategy over the coming

year. Adspend has already dropped in the first two months of 2000.



Agencies - Zenith Media handles BMW’s media buying and planning, and WCRS

handles its creative work. There are continual rumours suggesting BMW will

centralise its European media and creative accounts in Munich, but the

company is unlikely to make a decision until it knows the full effect of

selling Rover.



Total spend and the media mix - BMW spent pounds 14.2 million on

advertising in the year to February 2000 - not enough to put it in the top

100 advertisers but still a sizeable ad budget. Most spend went on TV and

press (52 per cent and 39 per cent of spend respectively). This was

supported by outdoor, direct mail and radio campaigns. BMW did not use

cinema last year.



Spend details - BMW’s advertising spend in the 12 months to February 2000

was concentrated in two major campaigns which ran from May to June and

September to November. The company spent pounds 5.4 million (38 per cent

of annual spend) on the summer drive and pounds 5.5 million on the autumn

push. Both involved the launch of a TV campaign.



These peaks aside, TV and press ads ran throughout the year. Radio ads

were used in four of the 12 months, while 99 per cent of outdoor spend was

in June 1999. Direct mail advertising was minimal.



BMW advertised on 62 television channels over the year, split between 13

satellite and 49 terrestrial. Spend was clearly focused on major

metropolitan areas, with the top channels comprising LWT, Carlton and

Central as well as more upmarket satellite channels such as Discovery and

National Geographic.



This upscale bias is also reflected in press advertising, where tabloid

titles were shunned in favour of mid- and upmarket titles. The Daily Mail

and The Mail on Sunday landed pounds 1.2 million of BMW’s spend (over a

fifth of all press spend), Telegraph Group netted pounds 750,000 and The

Times and The Sunday Times bagged pounds 1.1 million. BMW’s favoured

magazines included Harpers & Queen, Golf World and Autocar. There was

negligible use of regional titles - this is in marked contrast to Ford,

whose dealers advertise in a wide variety of regional press.



Conclusions - General bad feeling over the Rover affair - some fleet

managers are already removing BMW from the choice of vehicles offered to

staff - means BMW will have to evaluate and probably change its UK ad

strategy.



It could continue to push the core brand values of its ’ultimate driving

machine’ but if fleet and private sales begin to suffer from buyer

resentment, BMW will almost certainly have to re-think its strategy to

deliver a new brand proposition.





Research by AC Nielsen MMS tel: 01344-627553 www.mediamonitoring.com



Topics

Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).