Automotive brands in New Zealand spent NZ$1.0765 billion advertising passenger cars and commercial vehicles in the years 2007-2017, a research group document shows.
The companies collectively spent an average of NZ$97.8 million a year in advertising dollars over the 11-year period.
That works out at around $900 for each of the 1,217,680 new vehicles registered with the NZ Transport Agency (NZTA) during that time.
The annual spend in each of the 11 years reflects the state of the new vehicle market, a show-and-tell barometer of the country’s economy.
In 2007, for instance, before the global financial crisis (GFC) bit deep, new vehicle registrations totalled 102,468 and collective advertising budgets NZ$91m.
Two years later, when the NZ new vehicle market fully felt the spill-on effects of the GFC, registrations had slumped 31.6 per cent to 70,048; car companies’ advertising spend fell 21 per cent to $72m.
In 2010, the brands spent $82m and registrations jumped to 80,453, a hike over the previous year of around 200 new vehicles a week. The companies spent $82m again in 2011 when NZTA numbers totalled 84,640.
The new vehicle market bounced back in 2012 with 100,795 registrations, helped by a healthier economy and advertising spend by automotive brands of $115m.
The same nameplates pushed their spend up by $15m to $130m in 2013, when 113,297 new vehicles were registered. But they pulled it back to $103m in 2014 when registrations totalled 127,352.
New Zealanders were starting on a new car buying spree and brands didn’t need to spend as much to keep it going.
In 2015, they spent $99.5m – registrations totalled 134,234. In 2016, they spent $102m – registrations totalled 146,939. In 2017, they spent $108m – registrations totalled 160,124
Car brands’ advertising spend in the past few years has roughly averaged between $700-$750 a vehicle. Back in the lean years 2009-2013 they spent around $1000 for each registration.
Here are the total NZTA registrations and the brands’ advertising spend since 2007.
2007: 102,468 – $91m
2008: 97,330 – $92m
2009: 70,048 – $72m
2010: 80,453 – $82m
2011: 84,640 – $82m
2012: 100, 795 –$115m
2013: 113,298 – $130m
2014: 127,352 – $103m
2015: 134,234 – $99.5m
2016: 146,939 – $102m
2017: 160,124 – $108m
2018 – $57m after six months. That’s an average in advertising dollars of just over $700 for each of the 80,036 new vehicles on the NZTA books. (January-June spend in 2017 was $55m).