Move Follows Digital Account Consolidation at Campbell Ewald

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DETROIT (AdAge.com) -- Michelin North America is increasing its online advertising spending for car and truck tires up to 10% next year, even as its overall marketing budget remains flat compared to 2005.
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Scott Dishman, communications manager of the Michelin brand, said the marketer will cut back on event sponsorships and funnel that money to the Internet. One event it will no longer support is the title sponsorship of the PGA Championship event in Las Vegas that it has held for the past two years.

Not dropping TV
“We’re not dropping TV” or shifting dollars from one media channel to the Web, he said.

Michelin spent $17 million in measured media in the first half of 2005 compared with $19 million for the same period of 2004, according to TNS Media Intelligence. The brand spent $857,000 in online ads during the period, a 62% jump from 2004’s first half, according to TNS. Mr. Dishman disputed that TNS data, calling it too low, but declined to reveal the actual online spending.

Digital account consolidated
Michelin consolidated its U.S. digital account for its tire brand at Interpublic Group of Cos.' Campbell Ewald, Warren, Mich., its creative and media buying-and-planning agency since 2001. The marketer now has all the same account team and media planners under one roof.

Next year, Michelin wants to be more targeted in its online approach to reach the 5% of Americans who are shopping for tires any given week. “We need to be on auto enthusiast sites and draw them onto our site,” Mr. Dishman said. In 2005 and prior years, Michelin had bought ads on broad-reach portals such as Yahoo.

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