Toyota, Australia's top advertiser in $661m automotive category, sticks with R/GA for digital as CX becomes key battleground
After going to market in the middle of last year, market leading auto brand Toyota is sticking with R/GA as its digital agency. The carmaker, which is fighting off a renewed challenge from Ford in the ute category, has extended its relationship with R/GA as it bids to make personalised CX a key competitive advantage.
What you need to know
- Nielsen data confirms Toyota as Australia's top Auto advertiser and one of the top 20 advertisers overall.
- Australia's automotive brands spent $661m on advertising last year per Nielsen's figures.
- The brand has reappointed R/GA for its digital work, extending a relationship that started in 2016.
- While it remains the top auto brand locally by a huge margin, rivals are stealing share. In 2023, Ford's Ranger ranked as Australia's best selling model.
- Toyota still has three cars; Hi-Lux, Rav4, and Landcruiser in the Top 10.
- As carmakers pour billions into electric vehicle development and new sales channels, the firm says individualising customer experience will be key to staying ahead of the chasing pack.
The automotive industry is at the cusp of a remarkable transformation, calling for solutions that prioritise customers’ individual experiences. As we navigate this evolving landscape with new and used vehicles, services, and communications, we recognise the importance of staying ahead.
Toyota Motor Corporation Australia has reappointed R/GA to manage its digital advertising business, a role the agency has held since 2016, following what is described as a highly competitive pitch. Last year Toyota was the country's top-selling car brand with 17.7 per cent of the market, according to the Federal Chamber of Automotive Industries (FCAI).
The company is also one of Australia's biggest advertisers. Nielsen data shows Toyota has a lock on a top 20 spot and is the county's leading auto advertiser. Australia's auto brands spent $661m on advertising in 2023 with Toyota the top spender, followed by Hyundai, Mitsubishi, Kia and Mazda according to Nielsen Ad Intel.
R/GA will have ongoing carriage of digital marketing efforts across experience design, SEO, data, and platform management, encompassing vehicle, product and service launches, campaigns, and brand narratives.
Toyota went to market mid-year and in addition to R/GA is believed to have seriously run the ruler over Publicis, which in 2021 landed Toyota's $100m media account, and at least one independent agency. A spokesperson for the incumbent attributed the renewal to R/GA's "ability to deliver solutions with impact through applications of data, experience design, and holistic connected ecosystem strategy."
Flux capacity
The automotive market in Australia has been in flux in recent years. New car sales are robust, with 1,216,780 vehicles delivered during the year eclipsing the previous record of 1,189,116 which was achieved in 2017. But there is churn beneath the headline. As we reported in August last year, Toyota in 2022 sold one in five of every new car in Australia, its best-ever year even amid decades of dominance. However by mid-2023 the outlook was less rosy, and it was going backward down -21 per cent year-to-date by July 2023 amid supply chain challenges. However, the brand arrested that slide in the second half of the year, ending the calendar year back -6.8 per cent. It still maintains market leadership by a big margin, selling 215,240 vehicles in 2023, more than double its nearest challenger, Mazda.
It also still finished the year with three of the top-selling cars in Australia, the Hi-Lux, Rav4, and Landcruiser, according to the FCAI. Ford's Ranger was the top-selling model, with over 63,000 units.
According to a Toyota Motor Corporation spokesperson, “The automotive industry is at the cusp of a remarkable transformation, calling for solutions that prioritise customers’ individual experiences. As we navigate this evolving landscape with new and used vehicles, services, and communications, we recognise the importance of staying ahead. This makes R/GA the ideal partner to leverage our brand strengths that will maximise both value for individual customers and Toyota’s value chain.”
The companies say the partnership marks the next chapter in Toyota’s ongoing journey of innovation, with a focus on enhancing connected customer experiences.
Michael Titshall, CEO of APAC at R/GA said, “Our longstanding and deeply integrated partnership with Toyota has never been stronger. We share a commitment to continuous improvement and innovation as a core business value and we take real pride in collaborating with the market leader to drive mobility transformation in Australia. Our ongoing partnership is a testament to our combined team's strength and the innovative spirit that defines our approach.”
