Audi’s terrific A3 TDI commercial led the automotive pack, ranked 6th of 65 by USAToday but all the others were also-rans. Here’s how the automotive participants ranked in last year’s advertising beauty contest:

A dismal showing by the auto industry.  Despite being one of the highest interest product categories with some often fantastic products, we seem to be unable to captivate the Super Bowl audience.

To be clear, getting highly ranked in USAToday’s poll has nothing to do with judging a TV commercial’s effectiveness, it simply is a measure of a panel of consumers’ reactions and “how much they liked each ad.”  But it is without question, ‘the game within the game.’  As a Super Bowl advertiser you spend $3MM or so for 30 seconds and the chance to get noticed and liked. It’s an opportunity to get tongues around the world wagging about your ad, your brand and maybe even your products.

But to make that happen, you have to do something amazing. Something funny, something out of the ordinary, something really worth watching and paying attention to.  Historically the automotive advertisers have been unwilling to step up to the Super Bowl plate and swing for the fences creatively (to shamelessly incorporate a baseball metaphor into a piece about a football game).

Last year Audi and its agency did a nice job using the “Green Police” to start a conversation about clean diesel technology.  Funny, interesting, different and informative got Audi into the top 10.

This year automotive participation is at it highest level in recent memory and perhaps for all time.  Audi, BMW, Chevrolet, Dodge, Jeep, Hyundai, Kia, Mercedes-Benz and Volkswagen are all participating. Some of the most creative agencies in the business are creating work for the big game: Wieden (Chrysler), Venables Bell and Partners (Audi), Goodby (Chevrolet), David & Goliath (Kia), Deutsch LA (VW).

Great brands, great products, great agencies and lots of consumer interest. Maybe this will be the year that automotive dominates the game within the game with ideas that get people talking.

If not, it won’t be a complete loss; the football game should be great.

After an incredibly tough 2009, consumers seem to be coming back.  For the first time in recent memory, Americans’ perception of domestic automobiles seems to be on the mend (Business Week 4/23).  Ford’s bet that Americans will buy smaller, fully featured automobiles looks like it may pay off.  GM’s product plan created by soon-to-retire Bob Lutz is leading a resurgence for the General.  Hyundai and Kia, supported my excellent product quality, have taken advantage of recessionary sensibilities and grown share of market.  Audi , Subaru and Mini have come out of the recession on a tear.

On the other side of the ledger, Toyota continues to struggle with recalls and concerns about quality.  This has led to unprecedented incentives by Toyota and the predictable response by competitors to match them.  So a good number of consumers who had been sitting on sidelines during the recession have come back to dealerships looking to for a good deal.  After 2009, it’s a relief to see traffic in the stores but at the same time if the incentives continue that will not be good for the industry long term.  In 2009, some progress had been made at reducing the use of incentives, but the moment Toyota jumped in to defend its franchise, that opened the floodgates again.

So the good news is that customers are returning to the stores, but are they coming back for the right reasons?

Coming out of a deep recession, it makes sense that price point will be critical.  But eventually, consumer confidence will return and what, other than price, do we want consumers to consider?  What will create preference and support higher margins?  This seems a good time to step back and evaluate the current state of our automotive brands and evaluate them against a new generation of potential prospects.   Our industry’s brands are not what they once were.

Many once great automotive brands have been allowed to slip into an amorphous state.  In the 90’s as manufacturers chased volume and sought a bigger share of the then expanding pie, it was no longer enough to stand for one thing, they needed to be more things to more people.  This led to communications that were less clear, less defined and the process of weakening great brands began.

If you doubt the veracity of this statement, look at the luxury segment of the category, Volvo, Mercedes Benz, BMW, Jaguar, SAAB were once clearly positioned brands that stood for something.  Many among us can still rattle off these brands’ core values.

• Volvo—safety
• Mercedes Benz—engineering
• BMW—performance
• Jaguar—design and performance
• SAAB—individuality
• Porsche—performance sports cars

For a long time the majority of consumers gave these brands credit for these values despite product and communications that seemed to go in other directions.  But now the problem has come to roost, there’s a whole generation of prospective customers that don’t know what these brands stand for, they weren’t alive when the seminal advertising that positioned these brands was running.

What to do?  Here’s a suggestion, form a small team of senior level marketing folks (independent consultants, agency partners) who are talented, understand brand building and the automobile business.  Make sure they are willing to commit themselves to genuinely understanding your brand in all its glorious detail and let them loose.  Tell them you want ideas that will clearly position your brand to a new generation of car purchasers who are a blank canvas.  Ask them to execute the idea across all media channels.  Ask for ways to use social media to create communities around your brand that take advantage of the enthusiasts who understand your brand so that their knowledge can educate the new generation.

Consumers are coming back into the stores, but most are coming back to get a good deal.  Manufacturers and their agencies need to re-build their brands.  With younger customers, they need to build them for the first time.  Incentives train people to buy based on the deal and consider the products commodity-like.

In a category where it is now difficult to buy a “bad” vehicle, the threat of commoditization is very real.  A strong desirable brand is the only thing standing between a manufacturer of differentiated products and a supplier of generic transportation.

Please let me know what you think.

The Hyundai Assurance Program was a stroke of brilliance at a time when the economy and the auto industry were in a tailspin.  It basically gave consumers a no risk way to purchase a vehicle.  If you bought a Hyundai and subsequently lost your job, you could return the car, no questions asked.  Truly brilliant and it propelled Hyundai through the recession and out the other end.  Hyundai’s 2009 sales grew 8% and its share of market was up 1.1 points.  This performance earned it elite status as one of only three automobile brands (Kia & Subaru were the others) to increase volume in 2009, while the industry overall declined 21%*.

The Hyundai Assurance Program was an unqualified success in a tough marketing climate.  But now what?

Hyundai has a big challenge in front of it.  How do you take what was basically a tactic and turn it into a long-term brand equity.  The Hyundai Assurance Program gave consumers exactly what they needed when they felt threatened and vulnerable. As the the economy recovers and confidence returns, the Hyundai Assurance Program will lose some of its allure.  If you’re not worried about being fired, then you really don’t need the program.  Recognizing this, Hyundai extended the Assurance Program basically saying that we’re not out of the woods yet:

Pretty good job of recognizing that this “tactic” needs to be adjusted, but it’s still a just a tactic, a promotion.

Hyundai has done a great job designing, engineering and building quality products.  They also have priced them very competitively in the market place. Hyundai has been building a nice business based on terrific quality products at fair prices. Quality products and pricing are the foundation stones of a powerful automotive brand, but the folks at Hyundai are not quite there yet.  I think that what they do with the goodwill generated by the Hyundai Assurance Program will determine if they build Hyundai into a brand that occupies a special place in consumers’ minds.

This latest commercial hints at where the brand could go.  Imagine if Hyundai could be the automobile brand that “always has your back.” Great products at fair prices and a company that’s looking out for you. There’s a powerful brand promise.

The hard part will be keeping that promise and making delivery against it part of the fabric of the company and its dealers rather than just a promotional offer.  If they can do it, Hyundai will become an extraordinary automotive brand that has gone beyond product quality and price to forge an emotional connection with their customers.  This emotional connection will differentiate Hyundai and give it remarkable leverage versus Toyota and Nissan.  Getting the Assurance Program done was a critical first step, but what Hyundai does next will be telling.

* Sales figures sourced from Automotive News’ Data Center

Generally speaking I thought the advertising game within the game was just OK, not great.  Within the automotive segment, six manufacturers stepped up for the Super Bowl:

As I said in an earlier post, the tough part about advertising in the Super Bowl is that while the football game is the primary draw, the advertising contest comes in a close second.  As an advertiser you have to be willing to do work that will stand out and entertain because the very next day the “results” of the ad contest will be published in USAToday.

I always watch the Super Bowl hoping that one or more of the automobile manufacturers will break out of the category mold and amaze us.  Here’s my take on the automotive commercials, from best to worst:  

I think Audi was the automotive standout this year.  A lot of industry veterans would have lined up to say that advertising a diesel on the Super Bowl was a waste of money because Americans don’t like diesel. As they have done for the last year, Audi takes on America’s perception of diesel.  Audi recognized that Americans are interested in being environmentally responsible but at the same time find the “green movement” a bit over the top.  The “Green Police” was a nice idea with enough oomph to do well in the ad contest.

Volkswagen’s “Punch Dub” commercial was the second best automotive entry. While it was a little bit more of a traditional car commercial, I thought it was fun to watch and did a nice job of illustrating the breadth of the VW product line with the warmth and humanness that we’ve come to expect from VW.  The Stevie Wonder ending was a master stroke.

I know that Hyundai’s ads introducing the new Sonata will be criticized by the advertising industry as “expected.”  Despite being more traditional category commercials, I think that they did a good job of making specific points that communicated an overall sense of quality engineering.  Better quality paint than Mercedes-Benz and the idea that the car is “handmade”   spoke to quality while the film itself made the product look terrific.  These ads won’t win any advertising awards, nor did they do well in the ad contest, but they got their message across and the product looked great.

The Dodge Charger commercial was certainly a departure from the category norm, particularly for Detroit. Some have said that they thought advertising the Dodge Charger (high performance/in-efficient) seemed out-of-step with current societal sensibilities. Perhaps, but I was left wondering if the notion of the “hen-pecked” male was even more out-of-step.  I hope that there is a segment of the male population who will identify with this commercial and go buy a Dodge Charger to affirm their manhood.

I sincerely hope that Kia’s execution appeals to young families as intended. While entertaining, I found the commercial silly and didn’t learn anything.

Honda’s ad for the Crosstour seemed forced, although I got the point that it offered a a level of utility in a sporty package.

Overall, my take is that VW, Audi and Hyundai made good use of their Superbowl investment, the others did not.

With 2009 behind us it will be fascinating to watch what each brand does with their piece of the most expensive advertising real estate in the world. The Super Bowl represents an incredible opportunity to reach the biggest television audience of the year.  Brands that have used the opportunity well, have in some cases changed their fortunes…Apple’s introduction of the Mac comes to mind:

Here’s the challenge with the Super Bowl.  The Super Bowl is not just the game that decides the NFL champion, it has become the crucible in which winners and losers are defined in the advertising business. USAToday will not only report who won the game, they rank the advertising gladiators. There’s a lot at stake for the agencies and their clients.

From the agencies’ perspective there is no bigger showcase for their work.  If your commercial is deemed one of the best then you have a happy client and a terrific new business credential.  If your commercial is among the worst then you have a client who wonders if they just wasted $3,000,000 and as an agency you’re embarrassed in front of your peers.

It will be interesting to see which of the six automotive manufacturers capitalizes on the the opportunity presented by the Super Bowl.  Which one will communicate something interesting and brand defining to the millions of people watching in a way that sends them running to their computers to watch it again on YouTube. Imagine if we had had the internet in 1984, we would have overwhelmed YouTube with requests for Apple’s 1984.

I hope this happens, the auto industry should be doing the kind of work that demands attention and gets people talking.  We market some of the most interesting and engaging products in the the world and yet the automotive advertising in the United States is so predictable.

So who will it be?  Who will do something big, bold and unexpected? Audi has done a respectable job in past Superbowls.  VW will be showing its first work from Deutsch.  In Europe, Honda’s work has been amazing (Cog and Hate Something, Change Something). Hyundai’s Assurance Program has certainly been a marketing coup for the company but the advertising will not carry the day in the Superbowl. Perhaps it will be Wieden’s first work for Dodge.

I’m keeping my fingers crossed that one of the auto manufacturers will amaze us.