CleanTechnica writer Barry A.F. recently wrote two passionate articles explaining his arguments why Tesla should start advertising.
One of the things that Elon Musk likes to praise about Tesla is that the company does not advertise. He clearly has a strong hatred for advertising, which according to Wikipedia can be traced to ancient civilizations. But despite Musk’s personal hatred, there are actually important reasons for not spending Tesla’s valuable marketing funds on advertising.
It is important to explain, however, that while Tesla currently does not spend money on traditional national/countrywide or local/regional advertising, the company’s success to date in most markets is made by a variety of marketing and customer experience-oriented activities. These include test-drive events and meetups, website content, public relations, social media, showrooms and galleries, presence of charging stations, referral purposes, and email marketing. What is important to understand about advertising is that what the channel is good at is convincing a consumer to buy a specific product or service that they already have an interest in buying. It is also good at creating brand awareness and decision. Advertising generally does not exceed at nor is cost-effective in teaching consumers on new product categories. Advertising is generally a patient activity and unless consumers have an existing interest in a product or product category, they are much less likely to contract with the advertisement.