Daimler-Chrysler, the nation's third-largest advertiser, is moving away from traditional TV advertising in favor of entertainment- and fashion-related marketing efforts, The Wall Street Journal reports.
"The networks keep raising their rates so much," Jim Schroer, the new executive vice president in charge of sales and marketing at the German company's Chrysler division, told the Journal. "The networks could get away with that in the past when the rest of the world only watched a few TV channels. But today, it is difficult to get a consumer's attention on network TV." Chrysler's TV outlay rose more than 38% in the past four years to about $1.2 billion, from $868.8 million in 1997. It spent more than $1.6 billion annually to advertise its cars last year. Schroer didn't quantify what portion of that might go to other media this year, but Chrysler characterizes the shift as long term and substantial.