One day, an admirer asked Herr Doktor Sigmund Freud if his favorite tobacco product was a phallic symbol. “Sometimes a cigar is just a cigar,” Freud reportedly replied. By the same token, when Porsche North America announced that they’d turned their back on the Detroit auto show because it’s a waste of money, the German automaker turned their back on the Detroit auto show because it’s a waste of money.
The obviousness– and obvious importance– of Porsche’s withdrawal from the North American International Auto Show (NAIAS) was lost on America’s mainstream automotive press. Detroit’s journalistic Janus (the Detroit Free Press and the Detroit News) concentrated on the effect of Porsche’s pull-out on their home town show vis-à-vis the competition: LA, New York, Chicago, Tokyo, etc.
“Detroit auto show digs in to defend its perch” the Detroit News headline announced. Quoting an unnamed New York Times blogger, the article was quick to put the diss in disinformation: "So Porsche is, in effect, telling the Detroit show: Despite your name, we don't consider you 'America's auto show.' To us, you're local — with only local appeal.”
Needless to say, this loosely attributed analysis became the official media line, complete with sales figures revealing Detroit's paucity of Porsches. The reporting left readers with the impression that Germany’s sports car maker was discounting the importance of the spiritual home of American automaking ‘cause the locals weren’t buying enough Porkers. Schwein!
Yes, well, in the press release announcing their Motown-missing maneuver, Porsche’s marketing Veep went out of his way to kiss Detroit’s ass mollify Renaissance City supporters (motto: “Speramus Meliora" or "We hope for better things”). David Pryor also spelled out the company’s exact reasoning.
“As a media showcase for new products, the Detroit Auto Show is clearly the premier international auto show in North America," Pryor proclaimed. “Still, as Porsche strives to seek new, more personal ways to directly reach out and communicate to its potential customer base, we need to look beyond the traditional consumer auto show — even ones that are highly renowned in the industry."
In other words, Porsche isn’t dumping Detroit. It’s retrenching on auto shows in general. And why wouldn’t they? There’s simply no getting around the fact that if you calculate the direct return on investment– the marketing bang-for-the-buck– auto shows are a hideous waste of time, effort and money.
Porsche ain’t saying, but their NAIAS no-show will probably save the company over a million dollars. And that’s without calculating the costs of interrupting Porsche’s ongoing projects to sequester their A-team in Cobo’s dark labyrinth. Or the psychological toll exacted on the execs by the epic glad-handing.
But the real story is, again, exactly what David Pryor said it was: the world’s most profitable automaker (on a per unit basis) has recognized that there are better ways to “communicate” with the only really important element of the entire marketing equation: the people who help Porsche pay the bills.
That said, our friends at the sharp end tell us they’ve haven't heard word of any “new” or “more personal” marketing programs. As far as they know, other than a significant increase in Porsche’s print ads (promoting Cayman and Cayenne lease deals), the company isn’t using the auto show budget to launch a radical marketing campaign. Ah, but will they?
Even in the absence of any specific initiative, one can speculate that Porsche has realized that automotive marketing has undergone a paradigm shift; that “high touch” and highly-targeted electronic contact are the way forward. There's certainly evidence of an evolution.
For example, the next fourteen classes at the Porsche Driving Experience at Barber Motorsports Park in Alabama are sold out. Porsche’s added new “Women’s-only” instruction and corporate classes that can accommodate up to 100 fast-moving movers and shakers. At the same time, the Porsche Travel Club is offering a new “Camp4 Colorado” package in Vail, where owners and potential customers hoon in the snow hone their winter driving skills in 911 C4 and Cayenne variants.
As for the electronic side, well, here’s hoping. In truth, no automaker has fully grasped the cyber-nettle. As a Porsche Boxster S owner, I’ve been contacted about my car, potential upgrades, lifestyle items, car club membership, the aforementioned courses and my friends’ driving habits exactly, oh, never. Before purchasing the vehicle, I engaged in precisely no “personal" communications with the company.
Surely, THIS is where all those auto show billions SHOULD be going: using the Internet to establish direct, relevant and ongoing contact with potential automotive buyers and existing owners, and then bringing these contacts into direct and intimate contact with the product. Until someone seizes that opportunity, companies withdrawing their money from auto shows to spend on traditional marketing will be close, but no cigar.
You make some prescient comments regarding autoshows. Years ago it made imminent sense for all manufacturers to be present. Today autoshows are considered a form of “entertainement” by the attandance. “I paid X to get in, how many freebies can I get, how many vehicles can a sit in”, and in some cases how much vandalism.
Porsche might have opened the “can of worms” that no one else wanted to open.
Exactly right AGR. I worked my local auto show for Nissan. The 350z they had open to the public (why??) had ripped leather, stolen knobs, and paint scratch’s.
I did not generate one solid lead from the event. Some of the other salespeople generated one or two. Basically, they are just shows for gawkers and dreamers. Not too many buyers.
I couldn’t disagree more with your last paragraph. This tactic might work well for Porsche, who’s customer basis is basically only super-rich enthusiasts (and snobs) with an extra $70,000 to blow on a 2-seater, but the idea that other manufacturers should follow suit is, in my opinion, mistaken.
The automotive experience is visceral and passionate and the auto show is the perfect showcase for a manufacturer’s lineup. Personal contact is fine and dandy, all the emails in the world with pretty copy extolling the virtues of well-sculpted distinctly American craftsmanship is nothing compared to running my hand over the creases of a CTS, or sitting inside the car for that matter. The auto show is a necessary spectacle because the industry itself is spectacular, providing customers with an unparalleled owning experience well beyond simple transportation. Without the auto show, I wouldn’t be so hot to trot on the new Subaru Legacy GT because I would have never taken the time to go sit in one and be surprised at the interior quality and comfort… the dealership is a terrible place to experience a new car, or a used one for that matter. Nobody’s going to drive all over the city to check out every manufacturer’s offering, but the auto show gives them that opportunity.
From a numbers standpoint, you’re right, the auto shows are a waste of money, just as open houses are in the real estate business; but if auto buying were purely a numbers game everybody in America would own a Camry.
Porsche can scoff at us midwesterners and our conservative auto buying habits (trucks trucks trucks) because they can afford to, and they don’t need a bunch of fat, moustachioed 43 year olds with $30,000/year incomes drooling on their cars; but the other manufacturers know that a 700,000+ people that came to the Detroit Auto Show this year must have been looking for something, if not just a cheap thrill. Porsche is selling to the super-rich, but Chevy is selling to America, and the auto show circuit is integral to that.
Here’s a crude comparo – the pornography industry can afford to go straight-to-dvd because it’s customers know what they’re looking for and will find it regardless of a nationwide in-theater release… Porsche is pretty much Motorporn.
Interesting article, although I don’t know if I’d concur with the conclusion that the auto show is heading for dodo status.
I would think that the manufacturers’ goals for participating in the major auto shows, such as LA and Geneva, is for the media coverage. The shows are meant to be a buzz generator for the automakers’ brands, not a lead generator for the dealerships.
And a lot of this may come down to timing. The Detroit….er, I meant the North American International Auto Show, is held in January, while the LA Auto Show is now held in December. Given how closely together these two events are scheduled to one another, attending both shows for a company as small as is Porsche is really redundant. I would expect that they’ll get all the North American press attention that they need from the LA event.
Possibly autoshows have become “trade shows” first, and “public shows” second.
Most of the new models and concept vehicles are leaked to the media and public prior to the opening of the shows. The media “embargoes” have become a joke.
By the time the show opens its all old news, and the vehicles of interest in most cases are “cordoned off” on a turntable. The “WOW” factor of autoshows is inexorably decreasing on a yearly basis, and with increasing models most venues are becoming smaller, or comprise several buildings that is simply overwhelming for the visitors.
There was “retail busines” done at autoshows on a regular basis, this too is diminishing on a yearly basis.
The new car dealer association of “ABC” organises the yearly auto show for their dealer members to parade themselves in front of the various manufacturers, go to the VIP events to “hang out” and be seen by their peers.
When the show opens to the public, they send in the sales people to deal with the crowds, hand out brochures, answer questions.
Occasionally there are a few visits by “higher ups” during the show to get a “feel of the floor”.
In the meantime the serious customer is on his PC doing is due diligence, and visiting the show through several online automotive sites.
Autoshows are part of the business, in most cases they are yearly events, that last 7 to 10 days. How about the other 355 days?
Possibly autoshows have become “trade shows” first, and “public shows” second.
While the local “auto shows” have never been anything more than glorified temporary auto mall/ swap meets, the international-level major shows are all manufacturer supported and used to showcase new product launches and concept cars. I’d say that they’re two different animals, and always will be.
As I think about it, another factor here may be that the LA show, until this past year, was held in January, right before the Detroit show. So the logistics of attending both shows was probably easier before, when the shows were effectively back-to-back, than it is now, when they are about 1 1/2 months apart. For a small shop such as Porsche, organizing two North American events, with the holiday season in between, is probably not worth the hassle.
Still, Mr. Farago’s point is well taken. The Porsche reps pay homage to the Detroit show, but does anyone really still regard the Motor City as a global center of the automotive industry? We all know which direction that the Big 2.5 are headed (hint: it ain’t upward), and if there is a place in the US that serves as the tastemaker for all things automotive, it’s Southern California.
Detroit has fallen so far that it is now a place where a house can cost less than a car. Perhaps Detroit will begin offering 0.9% financing and $5000 cash back on tract homes, too…
This is so right on. I stopped going to auto shows years ago when they started asking me to pay stupid amounts of money to look at cars that I could go to see for free. You can’t get within reasonable looking distance of any of the exotics and generally any other entertainment value is gone. Porsche has it right – as they have for years in many things.
Detroit may be the first but not the last, I suspect.
Not so new ideas that are better places to spend money:
Invitation only events at dealerships for good charitable causes or to show off new product.
Driving events with driving advice and a chance to run one through some cones. Also a chance to sell upgrades and other stuff.
Sponsor club events.
Perhaps they could use the money to end the charge on euro delivery. My wife was very disappointed that she had to pay extra for that, and we are more likely to go with a used Boxster or Cayman because of it.
Dear Mr. Farago: Based upon your Porsche reviews and a new friend who kindly let me drive his 996TT X-50, I ordered my first sports car and received it June 2006, a launch 997TT. An astonishing car but where is your long anticipated review? The world awaits!
Interesting Article,
According to research conducted in the US and Canada that tracks people’s needs for automotive information and where they like to get it. Only about 2.5% of buyers in Canada and 4% in the US view auto shows as a place to get it. On the other hand, 16% in Canada and 14% of buyers use the internet as their primary source of information to make that purchase decision.
If you’re Porsche and only 2-4% of your potential market is using the auto shows as intended, that’s quite a bit of $$$/buyer!
Good marketing choice for Porsche but I have to admit, I enjoy auto shows for the spectacle and I hope they do not disappear.
I can’t speak to whether or not the local (smaller, such as Denver’s) auto shows are worth the expense to the manufacturers or the dealers but for me personally they are very valuable. As has been said above, the auto dealer is a HORRIBLE place to try and experience the look and feel of a car for most people – including myself. While I can’t drive it at the autoshow I can look and touch (not scratch) all I want. I avoid the dealers at all costs and there is NO way that a magazine or online source can confirm the quality of the switchgear, plastics, seats, what the gauges really look like, etc, etc, etc. These local autoshows allow me to rule out mutliple models before I start going through the misery of being acosted at the local dealer.
Now while autoshows may change a bit, I think I’d be more shocked if the dealer experience doesn’t change exponentially as technology changes. Wouldn’t it be great if I could go to the autoshow, take a bunch of junk off my list, and then call up the dealer and schedule test drives starting at my house. Heck, I’d buy every salesman a cheap lunch/diner to have them on my turf and intimidated. Of course the big question is how dealers could confirm I was a serious buyer and not the joy rider…but alas that is a different subject entirely.
The main reason automotive companies go to the Detroit show is to get press coverage. Porsche already gets press coverage far in excess of what it would earn if looked at as a fraction of the automotive market. Kia sells more cars than Porsche, but when was the last time you saw a Kia on the cover of any car magazine?
Porsche was smart to dump that dated venue. They should be exhibiting in LA, Miami, San Francisco, Dallas, Vegas and other modern era cities. Detroit is not relevant to Porsche buyers, and the fawning press will drop their drawers for seat time in any Porsche they can get their hands on, especially if the test drive includes beautiful coastal drives. Who wants to drive anything in Detroit in January?????
Aw, gee, imagine. No more stuff showing up on E-bay two minutes after it gets into journalistic hands.
No more incoherent blokes wandering about with chocolate cake falling out of one side of their mouths and egg salad out the other.
The pet dog press won’t know what to do without a motor show.
As an aside, concerning the mention of Skip Barber driving school et al, I see that accident rates among high performance car owners AFTER going to a driving school increase very significantly.
They thought they were Gods’ gift to driving before going to school, now they KNOW they are – not.
The super cars and high end luxury vehicles are “the hook”. This isn’t about being slighted, this is about potentially losing the ability to draw in the gawkers that AREN’T going to buy any of the exotics, but could very well be convinced to buy a Fusion..
The exotics and high end brands are bait…can’t fish without em IMO.
Thanks for all your comments. kazoomaloo: I couldn’t disagree more with your last paragraph. This tactic might work well for Porsche, who’s customer basis is basically only super-rich enthusiasts (and snobs) with an extra $70,000 to blow on a 2-seater, but the idea that other manufacturers should follow suit is, in my opinion, mistaken. OK, so Detroit gets 1m visitors salivating (in theory) over their mass market motors. Question: how good a sales funnel is an auto show? How many of Detroit's million man army are "in market?" What's the eventual conversion rate? What percentage do the carmakers even data capture? While motor makers' marketing mavens fall back on ye olde brand building justification, the economics are still highly dubious. How much brand building can you do in a hall with over 100 brands vying for your attention. Sure, some the show biz glitz rubs off, but probably not as much as you or the execs imagine. Pch101: Interesting article, although I don’t know if I’d concur with the conclusion that the auto show is heading for dodo status. I would think that the manufacturers’ goals for participating in the major auto shows, such as LA and Geneva, is for the media coverage. The shows are meant to be a buzz generator for the automakers’ brands, not a lead generator for the dealerships. As AGR and other commentators point out, the Internet has all but killed the buzz surrounding all these new car launches. That said, Autoblog's readership swells into the millions during the show. So not only do I NOT predict the end of the auto show, I WILL predict the rise of the virtual auto show. craiggbear: I stopped going to auto shows years ago when they started asking me to pay stupid amounts of money to look at cars that I could go to see for free. The idea of charging admission to an auto show makes me laugh (in a Beavis and Butthead sort of way). You want ME to pay YOU to look at YOUR products? It's like those dealer decals and plate holders that people put on their car. You want to put an ad on MY car without paying me? Henry Prevot: I ordered my first sports car and received it June 2006, a launch 997TT. An astonishing car but where is your long anticipated review? Sigh. CSJohnston: According to research conducted in the US and Canada that tracks people’s needs for automotive information and where they like to get it. Only about 2.5% of buyers in Canada and 4% in the US view auto shows as a place to get it. On the other hand, 16% in Canada and 14% of buyers use the internet as their primary source of information to make that purchase decision. And there you have it. XCSC: As has been said above, the auto dealer is a HORRIBLE place to try and experience the look and feel of a car for most people – including myself. While I can’t drive it at the autoshow I can look and touch (not scratch) all I want. Even as a journalist with unlimited access to both show cars and well-informed flacks, the circus leave me entirely unfulfilled. Driving's the thing to capture a king. Anyway, I agree dealerships suck. As Tony Blair might say, what's needed is a Third Way. philbailey: As an aside, concerning the mention of Skip Barber driving school et al, I see that accident rates among high performance car owners AFTER going to a driving school increase very significantly. I've said the same thing, only without factual verification (Death Cult). If you can substantiate that stat, that's a perfect TTAC editorial. Email robert.farago@thetruthaboutcars.com mrcknievel: The super cars and high end luxury vehicles are “the hook”. This isn’t about being slighted, this is about potentially losing the ability to draw in the gawkers that AREN’T going to buy any of the exotics, but could very well be convinced to buy a Fusion. That idea slipped my mind, which says something about the relevance of that concept in today's YouTube world– but maybe not much. My favorite display at the last auto show I attended: an Enzo on a tilted turntable. No PR flack, no stand bimbos, no literature. Sweet.
If you are one of the World’s smallest auto makers, your cost per vehicle is much higher for square footage at an auto show then the full line mfgs. Let’s face it with all the hype at Detroit, unless you have something revolutionary to unveil, you will get lost in the media blizzard. So yes the auto show along with print advertising and tv have to share space with the internet and other personal invite type marketing that goes on today. With porsche’s sliver of a niche, they could take one million dollars and do a lot of direct consumer targeted contacting I hate to be a snob, but wowing people who will never buy your product does not put bread on the table. Porsche neeeds to schmooze the porsche owners and identify potential new ones. The Detroit Auto show is not their best place to do this. As for the other auto companies they have different agendas and far larger product lines encompassing far lower prices for the massses. They may want to keep doing it and that may work for them.
It makes me wonder why Maserati,Lamborgini and Mercedes bothered to show up at Cobo hall as well?
At least with the Lambo’s you got eye candy in the form of models.
Porsche will actually get more press (and respect from their clientele) by announcing their non-participation in the NAIAS.
I DO have to disagree slightly with a few in the group here. There is a very fertile market of enthusiasts who would gladly pay for an exotic and vintage car show. In fact, it happens in every major metro-area on virtually every weekend of the year.
I could definitely see Ferrari, Porsche, Lamborghini, and perhaps even the Germans join in on a show that highlights the old and the new. With the proceeds going to a good cause, and enough of an admissions price (and restrictions) to reduce the lie/cheat/steal crowd, I can definitely see a stronger future in this area of the market.
mike frederick:
It makes me wonder why Maserati,Lamborgini and Mercedes bothered to show up at Cobo hall as well?
At least with the Lambo’s you got eye candy in the form of models.
Mercedes has a few models aimed at “normal” folks, like the new C class that can definitely benefit from positive press and hands on inspection by average joes…and the Smart Car needs all the face time it can get with the American public…the inevitable SLR and Maybach displays are just swagger/bait for their mass sales models.
I’d go to check out a CLK63 AMG Black Series if there was one on display…..
There is a lot of cars I’ve seen at auto shows that I would never consider for purchase if I did not. As state before, going to a dealer is a huge hassle to look at cars – not only the salesmen, but then the repeated harrassment from them. That doesn’t even include the killing of days of your time to do so.
As an example, my wife is clueless about cars, but I can show her a lot of vehicles in one place that she has never seen before. Normally, I rarely pay to get in, as my old dealers always send me tickets.
Of course, I’d never buy a Porshe no matter how much money I had, so maybe I’m not their target market.
I usually spend three 4-5 hour visits at our local auto show – the first to familiarize myself with the in-the-flesh products of which I’ve read, the second to poke and prod and form opinions, and the last to show friends around and make recommendations. It’s one of the highlights of the year for me (sad, isn’t it?).
Porsche’s cars have been ‘locked’ to the public for the last 5 years at our show, but seeing how people either intentionally or unintentionally rip apart some of the products I can see why they’d lock the cars. The constant smug look on the reps faces could be dropped though.
I don’t blame Porsche for skipping Detroit…..January in Detroit??? In a tired, dark, crowded venue? No thanks. The NAIAS has become as insignificant as the big 2.8, with the LA, NYC and Chicago shows all coming to the forefront in the US.
mrcknievel has the right idea (high-end cars as “bait” to lure people in), which I’ll take one step further. That ten year old kid whose parents are going to look at the generic family cars, today, will see that shiny Porsche or Ferrari and fall in love. Twenty years later, he strikes it rich in some dot-com IPO, and wants a fast car. If you weren’t there twenty years earlier, somebody else will be his fantasy car. Like it or not, high-end sports car companies sell fantasy fulfillment, so it’s essential for them to establish the fantasies in the first place. Auto shows are an important part of that.
A couple of years ago, Montreal dealers with luxury car outlets, split off from the mob and had their own show at the same time as the main event.
It didn’t work. Attendance was very poor.
Which actually proves their point. Motor shows are for the great unwashed, where privilege does not tread.
Steven Lang
I would agree that a high end car show – exclusively – might have some potential draw value however it would not be economically feasible for the makers to do this. Most of these shows use the exotics as a teaser – then keep you 30 feet away – so that you need to go do something for your money. Sitting in a Saturn ain’t worth it.
If I go to the local Ferrari dealer, I can look at at the newest stuff – up close for free. Duh!
One of my cars IS a Porsche (Boxster S – maybe the best all round sports car in the world – price/handling/performance) – they were very happy to see me when I went to look! And I have recently done the BMW X-drive challenge as a guest. Might actually consider one now – the new X5 is quite impressive. This is the way to go – personalize and keep the high touch going.
I prefer the “auto show” at the local mall. Area dealers bring cars for display. You can’t get in them unless someone from the dealer happens to be present, but you can check them out. The Porsche dealer may or may not display a car (if so probably that ugly SUV thingy) but what does it matter?
I don’t see the point of big auto shows – milling around, elbow to elbow with thousands of others to get a glimpse of a fat man blocking my view of a car. On top of that I have to pay to get in? Nah.
Ser porsche has always stunned me by the boredom, the same bugeyed face, the same mid- nineties-stuck design. straving diversity of vehicles. Almost no concepts. You must actually see yourself porsche in real life to see how tiny and smallish is this legendary beast( this sis where they get their nice weight savings. And now they show their hedonistic narcissus by pulling themselves out of NAAIAS. Why did they withdraw? what do they have to show anyway? new bugeye interpretation? no concepts anyway, no new models added. Should i be drooling over rolling platform because they have squeezed out additional ponies from their 3.6 ers? well, we won`t have missed much by your demise. Good bye. and thanks for all the fish( hitchiker`s guide to the galaxy).
A lanky boy slowly scuffed towards a shimmering car and almost immediately melted with it in a lust and a dance around the waltzing platform. his smooth fingers ran over the bulging hips of the carnauba polished concept. he was blushing from being seduced by this melody in metal frozen in a refrain. he drawed with fingers an invisible name on the shiny chest of the beast. he thought he wrote his name. only later , when dome lights in the afternoon were turned off, you could see distinct marks on the bonnet that clearly stated`Nagare`. See Porsche, it ain`t you, it ain`t you. ser Porsche,You can`t have me, because I am sober.
“Porsche ain’t saying, but their NAIAS no-show will probably save the company over a million dollars.”
A million dollars? As in….10 Cayenne Turbos? Is it really worth catching all that flak for 10 cayenne turbos?
The initial point “against” autoshows is good, but a million buck is nothing when we talk about automobile companies…
A million here, a million there, and soon we’re talking about real money.
Anyway, that’s at least a mil, which would go some way towards doing something wikkid on the Net.
jurisb:
And now they show their hedonistic narcissus by pulling themselves out of NAIAS. Why did they withdraw? what do they have to show anyway?
Ding Ding! Winner!
I’ve been going to the detroit show for nearly ten years, aside from the CGT what have they ever had to show? Oh look a 911! Oooh a more different 911 with a bigger spoiler!
Didnt one of the Koreans decide not to attend recently as they felt their money was best spent elsewhere? does make you wonder how many companies would really like not to go.
Also the (North American International Auto Show) The Detroit show is so small compared to shows else where, particularly in europe. The first time i went to Cobo i’d been round and was looking for the other halls to visit, but nothing. Its reputation preceedes itself. I felt let down in the motor city, the venue really needs to update and expand.
Well I think you have half a point. Auto-shows are a waste if you have nothing really interesting or new to show (not that Porshe’s aren’t interesting, but anyhow…) What I’m trying to say is there wouldn’t be a 2005 Mustang, or R8, etc. without auto shows. Auto shows are a great place to float concepts and see what sticks. Especially now with the internet. I haven’t been to an actual show in person in years, but I always look at the picture galleries from shows on websites. So that is marketing dollars well spent.
So if Porsche had pulled out a decade ago after introducing the Boxster concept, they would have had $10 million. Damn.
Can anyone say, PDK for the street? Years ago?
Frankly, I always thought auto shows were a waste of time. I have been to a few of them, they are crouded with 14 year old boys who sit in all the cars all day and push buttons. Perhaps its that i am out of love with new cars – they all look kinda the same any more – there are few suprises.
I much prefer to go to outdoor summer car festivals or concours type shows. They are, well – lazier. And better.
There are much cooler cars, and usually the old car show space is ringed by new car manufacturers anyway, if you feel the need to sit in that jag you lusting after. Then you can have a gin and tonic after at an outside bar. Bliss! I like the Greenwich Concours, the New Hope PA Auto show, and the Radnor Hunt Concours. Fun.