NEW YORK -- The Volkswagen brand needs a 10 percent boost in its U.S. advertising budget next year to keep pace with growing sales, said the brand’s U.S. marketing chief, Tim Mahoney.
At the Automotive News Marketing Seminar here on Tuesday, Mahoney said VW brand’s sales are up about 40 percent in the United States this year on an ad budget nearly the same as last year’s.
He said at the forum that he would ask VW’s brass in Germany for a 10 percent boost for its advertising budget.
Through August this year, VW brand’s U.S. vehicle sales rose to 286,750 from 208,423 in the same period of 2011 due to strong sales of the Passat sedan and other models.
Mahoney’s counterpart at BMW, Dan Creed, said any increase in BMW’s 2013 U.S. ad spending would be “small and modest.” He did not specify a percentage.
Creed, vice president of marketing for BMW of North America, added that BMW would have the resources it needs next year given that this year’s budget included a major U.S. buy to sponsor the Olympic Games in London and to buy TV spots during the 17-day event.
That money will be freed up for a variety of media next year, he said.
BMW viewed its Olympic sponsorship as a huge success that put the brand’s vehicles in front of 217 million TV viewers.
“One of great things about this business is that every now and then we get a chance to swing for the fences,” Creed said.
Mercedes-Benz USA’s marketing chief, Bernie Glaser, was similarly circumspect with any budget projections for next year. He said, though, that the carmaker’s advertising budget should reflect the growth that the brand has experienced.
In August, Mercedes-Benz edged the BMW brand for luxury car sales supremacy, selling 20,557 vehicles vs. 16,835 for BMW.