Jump to content

Registered users (members) don’t see this ad!

Sign in to follow this  

Toyota to spend more R&D, less on TV ads

Recommended Posts

Television ads are enormously expensive — not just the cost of airing them, but also of producing them to the standards that buyers are used to. 

According to this Reuters article, Toyota will slash sales and marketing costs in order to dump more money into research and development, as it tries to catch up in autonomous vehicles (where it had an early start, around twenty years ago, with technologies such as adaptive cruise control/braking). Marketing and general expenses were around $25 billion last fiscal year; total profit was around $22 billion, a 9% margin.

Toyota has already cancelled contracts with ad agency Dentsu’s unit in China, complaining of extravagant spending on a ride-and-drive and auto show display; and is targeting media/promotional outsourcing, hoping to gain more knowledge of how the money is spent and then spending it more effectively. Car show displays are very expensive, which has led some automakers to withdraw from non-strategic shows entirely — with a large stand costing around $10 million.  Read more at Reuters.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Create New...