Why Run Ads for the 3G Prius?

I am as excited about the 3G as anyone. And the ads I've seen are very clever and entertaining.

But what is the point of running ads, and spending tons of money on production and broadcasting of ads, in light of the fact that . . .

- There are very few 3Gs in the US
- You can't just walk into a dealer and buy one
- You probably can't even get a test drive
- There is a waiting list, here and in Japan (and elsewhere)
- Toyota is cutting US and Euro allocations to fill demand in Japan
- It may be a year before people watching todays ads can get a 3G

Ads cost a ton of money to produce and broadcast, so you wouldn't expect anyone to go to that expense unless it was necessary. I've noticed that, when a movie gets rave reviews and lots of press, they don't waste money on advertising - they don't need to. OTOH, when a big-budget movie gets lousy reviews, they promote the heck out of it - I guess to try to recover production costs.

So, why is Toyota spending (wasting?) so much dough on ads these days?

Because auto sales are way down, and the Prius is Toyota's poster child.

Tom

Point well made. I suspect it was Toyota's way of getting exposure to the 2010 due to the competitive market. Granted, if Toyota doesn't beef up production soon, this will all backfire and they will loose their market advantage. People will only hold out for so long then they'll loose interest.

Why did Chrysler run ads on the Viper? Or Ford run ads on the Ford GT? You couldn't test drive one, and few actually were in the market for one. However, they were flagship models that drew people into the showroom who bought something else.

Same with Toyota. Not everyone will go into the showroom and emerge with a Prius. Most will buy other vehicles. However, many will be intrigued by Toyota's commitment to environmental friendliness, and that environmentalism will rub off on, say, a Corolla. Someone can buy a Corolla and feel they are helping the environment because the Corolla was built by the company that builds the best hybrid on the market.

Probably in part because Honda is now advertising the heck out of its hybrid.

- There are very few 3Gs in the US (they just got most of them off the boat and there will be plenty of 3G's on the road shortly).

- You can't just walk into a dealer and buy one (you can in many parts of the country and will be able to in all parts shortly)

- You probably can't even get a test drive (give it a couple weeks...you will be able to shortly)

- There is a waiting list, here and in Japan (not true...very few dealerships have ALL of their 3G's accounted for prior to shipment arrival)

- Toyota is cutting US and Euro allocations to fill demand in Japan (also not true...plenty of cars for everyone...just not quick enough for people that want the first one in their area)

- It may be a year before people watching todays ads can get a 3G (way off base...by the end of June anyone will be able to purchase a 3G...maybe not the package you want for a few more months in your area...but anyone can get one by the end of June/early July...especially if you are willing to look out of state)

And, any good business especially those dealing in higher priced items, has to advertise to sell their product. Unless there are no other options to buy a product like yours (which in the case of hybrid vehicles there are many options out there now)...good business practices involve telling people about your product.

Because they want to move this car into the mainstream and not just the eco-minded people...hense all the additions/standards and improvements on the 2010. Also, the more demand you create the more talk. The more talk the more free advertising. Kind of like the game system, Wii. Nintendo purposly kept the system in high demand for a very long time just by not producing enough.

With the noise Honda is making over the Insight folks may not realize the Prius is all new and different - and the leader in the category - unless they distiguish themselves with advertising that is different. <cough>

i dont know about your area but just went into dealer nearby for an oil filter and salesman attacked me to trade in my 08 for a 2010, he said they had plenty to sell.

If you ask this question about the Prius 2010, a real car that is really being sold and is really being manufactured at a rate of 50,000/month... I can't avoid asking why GM made Chevrolet Volt ads few months ago (about 2 years before predicted release)!

As others said, this is for visibility and the company public image. This is about Toyota leading the hybrid evolution from the 1900 car to the 21th century and making sure everyone knows about it.

[FONT=Arial, Helvetica, sans-serif]"Speed is the essence of war. Take advantage of the enemy's unpreparedness; travel by unexpected routes and strike him where he has taken no precautions.[/FONT]" -- Sun Tzu, The Art of war, 6th century B.C.

I am intrigued by this thread, as no one seems to have any interest in my 2007 Prius PKG 5 for sale by owner. Did I mention, I also have for sale, a 2010 Prius, a Dodge Viper and a Tesla Roadster? Come see my 2010 Prius, my Dodge Viper and my Tesla Roadster and we will see if we can send you home in a shinny Silver Pine Mica 2007 Prius PKG 5.

Like Rick said, it's to create awareness.

I've had at least five co-workers tell me they had no clue there was a new Prius. The ads, whether we like them or not, should help let people know that the Gen III is here.

And like others have mentioned, they have to compete with the Insight & Fusion. Both Honda & Ford have spent a boatload of money on media buys.

Nice, subtle thread hijack! Where better to advertise a Silver Pine Mica 2007 Prius PKG 5 for sale than a thread about advertising! Oh, of course this is just an EXAMPLE, not an actual hijacking, LOL. Oh, and did you mention something about having a Silver Pine Mica 2007 Prius PKG 5 for sale, or was that just a rumor going around the board?

Matt, I understand that my question assumes that there are more buyers than anticipated 3Gs. Your responses are based on another assumption - that there is more supply than demand.

That's my point. Cars "on the road" have already been sold. Maybe Toyota should wait to see if there are unsold 3Gs before spending multi-millions per day on advertising. If you can sell your entire production without advertising, then why advertise?

I read a Toyota press release, right here on PC, that said Toyota was cutting US and Euro allocations. The reason - they'd only expected to sell 100k 3Gs by January and they had 80k pre-orders in Japan alone.

Toyota's own press release supports my statement. See above.

Based on the Toyota press release, I doubt it. But I'm no better at predicting the future than, let's say, you are.

I understand that there are situations where you need to use ads to "create" demand. But if your entire production is sold, then why advertise?

There is a very small company, owned and run by 2 women, that produces very very high quality man-made rubys. Ever heard of them? Ever seen their ads? I doubt it, as their product is always sold out before it is even produced. That being the case, they haven't spent a cent to advertise for many years.

Toyota is full of smart people and I'm sure they have their reasons for spending tons of money, hundreds of millions, on ads. I just don't believe it's becasue they are concerned about being stuck with unsold 3Gs. Not for the forseeable future, anyway.

I truly mean no disrespect, but you've had a little too much of the Prius Kool-Aid.

I'm no kool-aid drinker but I'll admit, it may just be a perception versus reality issue as far as demand and availability of 3Gs goes.

I'm really more interested in the economics of running these ads, though.

What else do you need to know?

To by cynical about the whole marketing ordeal,,, After all it is a 2010 model and by the time that many people are financially prepared to buy one, it really will be 2010.

Keith

Spelling Nazi here; it's lose, not loose!