In the online world, however, presentation changes dramatically. Here marketers seem to be more than willing to try something new. “The success of online advertising has never been great and it continues to go down,” says Denise Garcia, principal analyst, media and advertising at GartnerG2. “Marketers are looking out of the box for solutions.”

Part of the website's success is that it captures the interest of MSN readers and doesn't try the hard sell. “The site's primary objective is around the Lexus brand and brand associations. It is aimed at people who may move into the market months, even years from now,” Troberman explains. “Since launching the site we have seen an impressive lift in awareness of the Lexus brand and that the brand means luxury.”

“I think there is great synergy between the two brands,” says Troberman. “Lexus is about luxury for affluent consumers. MSN is more of a mass-market brand for educated, more affluent, technically savvy online consumers. Lexus has a huge appeal for a large segment of the MSN audience.”

Hitching up with an existing web brand is also a good idea, according to Lindland. Manufacturers can piggyback on a large, loyal and extremely well profiled audience, even if they only appeal to a small sub-segment. “Co-branding is a good way to differentiate a product, and is nothing new for automakers. Ford produces the Eddie Bauer range of cars, for instance, and Subaru teamed up with L.L. Bean to produce the Subaru Gear range of outdoor apparel. Co-branding helps to reinforce the lifestyle image of cars, linking in to an existing group of customers with similar tastes, lifestyle, or age.”

As with any alliance, there are always risks, but Lindland argues that tie-ups with content providers like MSN are far safer than other methods like celebrity endorsements, such as Chrysler's deal with Martha Stewart.

Of course, MSN also has to weigh the risks. Would other car advertisers be put off from advertising on the network because of its close links with Lexus? And could it maintain its content objectivity?

“A lot of businesses face this question,” says Lindland. “I guess there's always a risk that some objectivity is lost, but you can't alienate all manufacturers by supporting just one.”

So far it appears that visitors to lexus.msn.com are content. The relationship allows Lexus to appear to be sponsoring the site, not conducting a full on commercial assault. And MSN has found a winning formula. Since joining up with Lexus it has developed 15 similar deals with top consumer brands, including sites for the Honda Accord and the relaunch of the Toyota Prius. Everyone wants a slice of the MSN pie.

But it is not the web brands that the carmakers want to access; it is their audiences. “Marketing dollars are at a premium,” says GartnerG2’s Garcia. “The knowledge to target a particular demographic is very important, and that is possible online. MSN has a large audience and technology enables the site to direct the right people to the co-branded sites.”

“Automotive marketers were among the first to embrace the web,” she continues, “and now they know that the web is best for effective lead generation and developing their brands with their target audiences. The manufacturers are using the web to get out of the trap of promotions and rebates. Developing their brands among potential buyers—even those that aren't in the market today—will help them to charge higher prices and get away from the price wars.”

And hopefully get away from those mundane offline ads too.    

[10-Jan-2005]