Mercedes to focus on direct instead of TV

Mercedes-Benz is to shift most of its 拢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 拢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, 拢9m, on outdoor advertising. The car manufacturer also spends 拢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.

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