Staying in your lane by understanding the tiered advertising system
Understanding the 3 Tiers of Automotive Advertising
When looking at the dynamic structure of the automotive market, the 3 Tiered advertising system is to help bring clarity, organization and hopefully synergies across advertising units.
Tier 1 Advertising: National Branding
Goal:
Geo:
Outlets:
Branding
National TV, Radio, Celebrity/Sports Endorsements, Digital Ads, etc.
National
Resposibility:
Manufacturer
Tier 1 Advertising: National Branding
Tier 1 Automotive Advertising is focused from the manufacturers perspective and generally at a national level. This is generally seen from the brand’s stance — like GM, Ford, Chevrolet, Toyota, Honda, etc. — and is really about making the brand resonate as the car company of choice.
Tier 2 Advertising: Regional
Goal:
Geo:
Outlets:
Brand resonation, regionally
Regional Broadcast/Cable, Billboards, Digital, Venue Sponsorship, etc.
Regional/DMA/MSA
Resposibility:
Regional Agency or Buying Group
Tier 2 Advertising: Regional
Tier 2 Advertising isn’t radically different than that of the national, Tier 1 focus but does have some intricacies to benefit the region. Tier 2 Advertising is really just the regional advertising initiatives that auto brands use to connect with the local community. Really, the goal of Tier 2 advertising initiatives are so that <insert locality>’s Vehicle Buyers think of <insert car brand> as <insert locality>’s #1 vehicle option (i.e. Pittsburgh’s Truck Buyers chose Ford as their Pittsburgh truck option).
Tier 3 Advertising: Dealership
Goal:
Geo:
Outlets:
Sell Cars
Cable, Social Media, Search, Billboards, etc.
Local/PMA
Resposibility:
Dealership
Tier 3 Advertising: Dealership
Tier 3 advertising puts a lot of the marketing effort onto the local dealership, to push buyers for the particular brand you offer as opposed to your competitor down the road offering the same brand. It’s important to note that Tier 3 advertising is not just local advertising. It is advertising at a local level, for a local establishment (the dealership) specifically for the national manufacturer’s brand or vehicle.