• Ad Age, Monday, August 28, 2006 12 PM

In a move being labeled a "radical experiment" by Pontiac, the automaker will spend its entire ad budget for the introduction of its new sporty G5 coupe on the Internet. The brand's marketing director, Mark-Hans Richer, acknowledges that the move is a calculated risk, but says it's worth taking because the target group for the niche model is young men. Richer said the G5's digital debut will cost 60 percent to 70 percent less than a traditional car launch. He declined to reveal specific spending--but a launch for a new model, such as the G5, typically runs $25 million to $30 million. Pontiac is not alone; other automakers are also experimenting with a marketing transition that could see it go from a $20 billion traditional advertiser to a leaner, meaner player more dependent on interactive and direct tactics. Interactive-buying shop Jumpstart Automotive Media estimates that within five years, auto marketers will get better ad bang for 20 percent less.

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