Renewable Revolution

CleanTechnica

Oct 28, 2021 By Guest Contributor

Originally posted on EVANNEX. By Charles Morris


Automobiles and advertising are symbiotic industries. The auto industry dropped over 14 billion bucks on ads in the US in 2018, a spend second only to that of the (much more fragmented) retail industry. Automakers advertise in every conceivable medium, from TV to radio to print to billboards to the internet — to say nothing of product placements, dealer support, public relations, press junkets and massive political contributions.

In fact, considering that legacy automakers outsource most of the components of their cars, and in some cases even final assembly, to other companies, it’s not a stretch to say that marketing and advertising are their core functions.

But wait — there is one automaker that spends nothing on traditional advertising (although it does lay out for events and other marketing efforts). And how has this company fared in the marketplace? Well, it has rapidly grown to be the largest automaker in the world by market cap, its vehicles consistently outsell competing models in their segments, and it has one of the strongest brands in the history of marketing, right up there with Harley-Davidson or the Grateful Dead.

So, does this mean that massive advertising expenditures are not necessary for automotive success? Well, it sure looks that way. Does this mean that automakers have been squandering billions on unproductive activities for the last century? Well, that could be. What else could the companies have been investing their money in all this time, and how much could they have improved their products as a result?

A recent article from Visual Capitalist looks at the per-vehicle amounts spent on advertising and R&D by some of the major automakers, and it makes interesting reading. The data, which come from the companies’ official 10-K filings, cover the 2020 auto market.

Of the five automakers considered, all except Tesla spend substantial amounts on ads — an average of $495 per vehicle sold. All also invest in R&D to improve their products — but none spends anywhere near as much as Tesla does.

For every car it sells, the California trendsetter plows $2,984 back into R&D, which is more than the US Big Three invest combined. It’s 2.5 times as much as Ford, the second-place R&D spender, and almost 4 times as much as Chrysler, the R&D laggard. Interestingly, Chrysler is also the biggest spender on advertising — $664 per vehicle.

It’s not a coincidence that Tesla’s vehicles are the most advanced on the road, and that the legacy brands are widely considered to be at least five years behind Tesla in terms of battery and software technology. Could they close the gap by moving some money from the ad budget to the R&D center?

“The balance of expenditures between R&D and advertising is part of capital allocation, a decision every business needs to make,” writes Visual Capitalist. “Generally speaking, more R&D can improve and advance the quality of your goods or service, relative to your competitors. If executed correctly, it has the potential to lead to greater pricing power.”

In the more enlightened boardrooms, there’s some soul-searching going on these days. Auto execs are calling crisis meetings, and one even asked the industry’s tormentor, Elon Musk, for ideas about how to dig the industry out of the oily hole it finds itself in. Here’s one: try spending less on inane ad campaigns, and more on bringing your products into the 21st century.

https://cleantechnica.com/2021/10/28/tesla-invests-in-rd-not-advertising-the-results-speak-for-themselves/

Agelbert COMMENT: The problem with the advertizing MO in the USA at this time is that they lie consistently. Their norm is presenting products in a false, overly positive light, without telling it like it objectively IS (i.e.  with real world pros and cons). It used to be against the law to deliberately mislead the public with happy talk mendacity. But, like with most other common sense laws and regulations that kept corporate crooks from running roughshod over we-the-consumers, our government now just looks the other way. 👎😠

Tesla was right 👍 to not advertize. Word of mouth works well for them. In fact, not advertising actually makes people have a higher opinion of Tesla ⚡ vehicles simply because, as anyone that doesn't live in a cave without internet knows, companies with shoddy, inferior products advertize heavily to sucker the rubes.

I would not doubt that the 🐍 executives high up in the advertising con game have always taken a very dim view of Tesla's lack of advertising. I am quite sure that the 🦖Hydrocarbon Hellspawn, great friends with these bold faced liar ad execs, together with the "big three" 👿 automakers (soon to be the big three losers 🤠), have been involved, for at least a decade, in a CRIMINAL CONSPIRACY to push 😈 FUD hit pieces against Tesla EVs disguised as "news". This blatant Mens rea, with funding mostly from big oil, but also from the automakers in the USA, has been going on ever since Tesla showed they could manufacture and market Electric ⚡ Vehicles super susccessfully.

It seems that the blindfold on "Lady Justice", rather than ensuring Ubi jus ibi remedium, actually prevents her from seeing Big Oil's crooked thumb on the scales of "justice". 👎😠


If you don't think Big Oil can flaunt justice through blatant corruption of our judiciary, perhaps you need a reality check (see below):

October 28, 2021

Yesterday, human rights lawyer Steven Donziger was sent to federal prison for six months for fighting Chevron – and winning. Yet despite this, yesterday was also a nightmare for Chevron and a victory for environmental justice.

For years, Chevron sought to destroy the life of its nemesis who helped win the over $9.5 billion judgement against the company for polluting the Ecuadorian Amazon. Instead, it has inadvertently handed the movement its biggest victory since the verdict against Chevron was upheld by Ecuador’s supreme court in 2013.

Yesterday, I stood outside the U.S. Capitol alongside Representatives Chuy Garcia, Rashida Tlaib, and Jim McGovern and we all shared the same message: there is a reckoning coming, and Chevron will be held accountable for its crimes. Today, the House Oversight Committee heard testimony from oil company CEOs – including a smirking Michael Wirth of Chevron – as well as the American Petroleum Institute on their deadly climate change disinformation campaigns.

Meanwhile, Steven Donziger sits in prison as a warning that those who challenge corporate power in the U.S. are at risk for their work, and those who are particularly successful will be targeted, criminalized, and jailed. 😠
https://amazonwatch.org/news/2021/1028-as-donziger-is-jailed-for-fighting-chevron-congress-calls-for-his-release

Oct 28, 2021