





Automakers have been fleeing main-stream media faster than most new reality shows get pulled from prime-time programming. There are many reasons for the move away from big dollar media, including decreased TV viewers and online ads soaking up some of the budget, but perhaps the biggest reason is that cash isn't spewing out of SUV tailpipes any more. Audi is one company that isn't high-tailing it out of the high rent district. The German automaker won't be cutting its 2008 ad budget, and instead, will be pumping more money into big-ticket campaigns. You'll see Audi touting the A4 at events like the Academy Awards and Sunday Night Football, along with its recent spots during the Olympics and last year's Super Bowl. Audi's goal is to bust misconceptions that it is a near-luxury brand by selling its cars as bigger, faster, and more efficient than the competition. Audi is in a huge hurry go expand to 1.5m global sales per year by 2015, and it has no intentions of letting something like a massive auto market downturn get in the way of its goals. To reach that goal, Audi will have to fare better in North America, and great products alone won't cut it if the word never gets out.
Mainstream media has been quick to pile on Detroit automakers, which, along with some questionable Motown metal, has helped drive nationwide perception of the Big Three into the ground. Now that times are tough at traditional media outlets, well, that's Detroit's fault, too. Back in 2004, about $24 billion was doled out to television, print, and radio ads. Fast forward to 2008, and painfully slow sales coupled with cash-strapped automakers and dealerships have cut that number to about $15 billion. That's putting an Excursion-sized dent in the earnings of stalwart media companies like Viacom and Time Warner (Autoblog and Weblogs, Inc. are owned by Time Warner), as the media giants point directly towards Detroit and a soft auto market to explain their drop in revenue.
While times are tough on TV, print advertising is taking the brunt of the blow. Newspapers took a $131 million hit in the first quarter of 2008 as dealers have pulled back on full and half-page ads due to slow sales and limited cash flow. The proliferation of mainstream Internet advertising is also cutting into old media's profits, as automakers feel they're getting more bang for the buck with less expensive online ads. With the car market looking worse by the day and the unabated growth of Internet advertising, we don't expect this trend to reverse itself any time soon.


Fiat and Tata already have a joint venture to distribute commercial vehicles. If they can do the big stuff, why not the little stuff? Tata and Fiat are looking at an agreement to sell the Tata Nano outside of India in markets where Fiat has a strong presence.
If the deal goes through, and once the car is upgraded to meet Western standards, Tata can take advantage of the Fiat name, marketing, and dealer network. Fiat would probably have a big seller on its hands -- and a slice of every one -- since the car is still expected to maintain a healthy price advantage even after it gets beefed up.
The Tata, however, is not expected to come to the U.S. as a Fiat. Ratan Tata said, ""We have held talks about the Nano being marketed in markets where Fiat has already a strong presence." Frankly, America isn't one of those places yet. With Tata making such a big splash over here with Jaguar, they probably wouldn't need Fiat to help the brand. Still, the thought of a Fiat 500 and a Nano snuggling in the corner of a dealership would be too cute to miss.
