Average marketing spend of major automotive vs Tesla

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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.

Published by Brandon Donnelly

I believe in helping people in whatever way you can. In the power of creativity to transform a life, a business and the world. That if everyone was more generous the world would thrive. I've been an engineer. A consultant. An entrepreneur. And a salesperson. I also enjoy art. Today, I write. Stemming from my diverse experiences, I have a broad perspective and share it with others on topics from doing work you love to running a small business.

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