Glenn Smith
Aug 12, 2010

Ad spend cuts have little effect on shrinking Japanese car market

Japanese car makers slashed adspend during the past couple of years, then sat back expecting the worst. But not much happened, which has led them to question the relevance of advertising to their business.

Toyota, Nissan, and Honda each cut advertising by US$200 to $300 million, but their market shares didn't change, says Chris Bonsi, managing director, TNS Infoplan.

A report from Dentsu shows automobile adspend plunging from 216.9 billion yen $1.8 billion in 2007 to -30 per cent to 134.6 billion yen in 2009.

Significantly, Dentsu's automotive category that also includes products such as motorcycles and boats under performed most major advertising categories, many of which suffered only single-digit year-on-year...

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