BMW to Cut its Display at the Frankfurt Motor Show by 75% to just 3,000 Square Meters
Funding for auto shows also gets slashed by 80%by Kirby, on
BMW has become the latest automaker to announce plans of scaling back its auto show expenses. According to a report from Handelsblatt, BMW is slashing its funding for trade fair appearances to around €5 to €6 million, a significant drop from its usual auto show funds of €25 million. The move is seen as an attempt to veer away from the traditional auto show setup and focus more on rising trade fairs in China, as well as dedicated technology fairs like CES and the Mobile World Congress.
This is not at all surprising considering how many automakers have made similar decisions in recent months.
This is not at all surprising considering how many automakers have made similar decisions in recent months. Companies like Porsche, Volvo, Mazda, Jaguar, and Mercedes-Benz have all withdrawn from the Detroit Auto Show. A few weeks ago, BMW also announced plans to skip the NAIAS beginning in 2019. Others have followed suit with regards to other auto shows. Technically, BMW isn’t leaving the Frankfurt Motor Show; it’s still going to have a prominent presence in the event. It’s the same story with the Geneva Motor Show, considered as the most important show in the calendar.
BMW will still be present at those events. The only difference is that it won’t have as big of a presence as it used to. For those who have been to the event, the German automaker typically has a massive presence at the show. It uses an entire hall for itself, covering a space of around 11,000 square meters. Moving forward, the German automaker is reportedly happy with having only 3,000 square meters at its disposal. This move cuts both ways for Bimmer. On the one hand, it’s going to have far less space to show off its new products. On the other hand, the lesser space means that it can concentrate on showcasing its most important models at a far less cost than what they’re used to spending.
The auto industry, as a whole, is now adapting to the changing trends of the industry
You can expect more moves like this happen in the future. The auto industry, as a whole, is now adapting to the changing trends of the industry. Tech shows like CES and the Mobile World Congress have become more prominent places for automakers to showcase their latest technologies, a lot of whom are being developed by big-time tech firms in collaboration with automakers.
Not only do these brands help save money for these companies — don’t sleep on the millions of marketing dollars that are being saved here — but it also gives them more room to engage in other promotional events. That’s also why we’re seeing more and more companies engage in personalized events to unveil their new products.
Auto shows are still important, but with more options on the table, together with the rise of the 24-hour social media landscape, it makes less sense for companies like BMW to put their whole marketing dollars on the auto show basket when there are now better ways to spend them.
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Source: Bimmer Today