Average marketing spend of major automotive vs Tesla

Tesla spends $0 on ads. Toyota spends an estimated $2 billion. GM is nearly twice that of Toyota, despite being worth roughly 1/4 of Toyota.

What’s going on? You know who Tesla is and they are selling hundreds of thousands of cars. That’s only a fraction of the other two, still, their ad spend isn’t in line with their results. Beyond that, why is GM spending so disproportionate to Toyota?

There are a lot of factors here:

  1. Remarkability of product
  2. Sales Volume.
  3. Market and vehicle type.
  4. Executive Leadership decisions.

The difference between Tesla and the others is purely #1. The difference between the others is items #2-#4. If you want to spend less on ads, you need to make something that your customers will talk about or share.