By Steve Miller

In April, a revolution went down. New vehicle sales dipped 8%, cars began to outsell trucks, and sales of compacts and hybrids leaped, gratifying greenies everywhere and giving the auto industry a headache.

The pain has extended into the media industry. Offline ad spending for the auto category fell 11% last year, per Nielsen Monitor-Plus. That's partially attributable to a general migration from traditional media into online. But, crippled by production cycles that are about three years behind the market, marketers at U.S. automakers are stuck trying to hype cars that are much less attractive now that gas has hit $4 a gallon in many places, including the Lincoln Navigator (down 17.6% this year), the Chevrolet Silverado -20.8%) and the Dodge Ram (-24.2%).

The momentum in the market has clearly shifted. A Kelley Blue Book survey in April found that 60% of new-vehicle buyers say gas prices have changed or influenced their purchase decision. Now, better-made small cars and gas prices have turned consumers on to cars like Toyota's Yaris and Nissan's Versa.

"It's finally starting to happen, just like they said," said John Bulcroft, president of the Advisory Group in Cresskill, N.J. "If this gas situation continues to go in the direction it is headed, you will see an even bigger change in another year. Purchasing habits are on the cusp right now."

Marketing has tried to follow the bouncing ball that is consumer preferences.

In May, Chrysler announced a new campaign, "Let's Refuel America," under which buyers of specified new models would receive cards that allowed them to purchase gas at $2.99 a gallon for three years. Print creative, via BBDO, Detroit, noted: "Chrysler is giving you relief just when you need it most." The automaker also bought banner space at consumer-oriented gas savings sites like gasbuddy.com.

Ford's new "Drive One" campaign, launched in April, features four pillars: drive safe, drive quality, drive smart and, of course, drive green. Team Detroit/JWT, Detroit is Ford's agency.

Meanwhile, hybrids, which had been dominating the conversation in terms of alternative energy before the days of $100-a-barrel oil, continue to play an emerging role in sales of small cars. Hybrids now account for 3.2% of all new car sales, up from 2.6% at the end of 2007, per Power Information Network, Westlake Village, Calif.

But while environmentalists have embraced the vehicles, the price point difference (they are up to $5,000 more) and the fact that other gas-powered cars are now approaching hybrid-like fuel economy are challenging the technology.

"The wallet always dominates in the car-buying decision," said Bill Moore, editor of EVworld.com, a site devoted to alternative energy and autos. "If [hybrid marketers] can conveniently make that case and make the economic equations easier, that will seal the deal."

The larger hybrids, such as the GMC Yukon SUV, have failed to catch on, partly because perceptions of size are changing. In the Yukon's Super Bowl spot, via Leo Burnett, Detroit—which featured the narration, "Why push? Why change? Why grow?"—the ad shows that car companies will continue to plug SUVs. Still, even with a hybrid engine that gets better mileage, big is not so beautiful at this point.

"My gut feeling is that those vehicle are really big and in this climate, regardless of the improved mileage, they are still large vehicles," said Tom Libby, senior director of industry analysis at the Power Information Network. "That large utility segment is down quite a bit, as are all sport utilities. It's just a dwindling part of the market."

Regardless, Lexus earlier this year launched "The Power of H," campaign, via Team One, El Segundo, Calif., for its hybrid line, including its SUV, the RX 400h.

In doing so, marketing vp David Nordstrom also noted that luxury hybrids, even big ones, have a place in the hybrid market.

"Around 20% of those buying a Prius have a luxury make in their household," said Nordstrom. "And 40% of the people who buy Prius have a household income of over $100,000."

Is It Green or Thrifty?
With all of the fuss about hybrids, alternative power trains and controversial fuels such as ethanol, most every automaker is now including something to draw attention to their own "enviromerits."

Kia's most recent creative, via davidandgoliath, Los Angeles, points to its fuel sipping and how a Kia owner makes so few trips to the pump that he soon forgets which side of the car holds the gas cap.

General Motors continues with its "five-step" ad campaign, via Campbell Ewald, Warren, Mich., which lays out five steps to fuel responsibility: Fuel efficiency, E85 ethanol, hybrid, electric and fuel cell.

Any campaign now has to, at least, give a nod to the green, said Steve Price, former president and CEO of Publicis, Mid America. "What was performance and safety before is now environmental. It should be part of the message," he said.

But while green (as in environmentally conscious) is good, green (as in dough) is even better when it comes to marketing message.

"The consumer is placing more emphasis on fuel economy and when that's the No. 1 or No. 2 thing they are considering when buying a car, you are going to see it more as part of the message," said Erich Merkel, an analyst with industry forecaster IRN, Grand Rapids, Mich.

Being viewed as an environmentally friendly company is still good, but overcoming the gas-price scares is better. "We're seeing the No. 1 concern as being gas prices," said Deborah Meyer, Chrysler CMO. But does it trump environmentalism? "I think both pose an issue, but gas prices right now is much more pressing, given the quick rise in prices that we've seen," she said.

An Emerging Platform for Auto Advertisers
Third-party auto sites are gaining speed as a place for car manufacturers to advertise. In past years, sites like Cars.com and AutoTrader.com were primarily places where consumers went to research new vehicles and sell used automobiles.

Today, it's become a popular place to advertise for dealers and automakers alike. When AutoTrader.com launched 10 years ago, it was geared toward the consumer who wanted to get details as to what the car was costing the dealer, with invoice statistics and package prices.

The used-car listings were also heavily trafficked, matching individual sellers with buyers, but new car dealers were essentially left out. "Dealers didn't understand the value of putting used cars on the Internet," said Clark Wood, vp-marketing at AutoTrader.com, Atlanta. "Now, they are learning that people start their purchase process on the Internet, and they are coming to us with new cars, and advertising with us. That hadn't happened before."

Cars.com is among the dozen or so top sites for consumers to research the various features of vehicles, to compare and contrast, and finally find a dealer or seller with the vehicle desired. This year the site kicked off an ad campaign with two spots during the Super Bowl in February. Owned by a conglomerate of five leading media companies, including the Tribune Co. and Gannett, the site plans to increase its ad spend by 50% this year.

AutoTrader.com recently came out with a new campaign, "Big guy," via Doner, Southfield, Mich., to promote its extensive line of new-car listings in addition to its used cars.

In the multiplatform campaign, the "Big guy" is empowered by AutoTrader.-com's new car shopping tools to get the best deal on a new car. The character is seen in creative towering over buildings and picking up cars and looking at them before he enters a showroom, analogous to a shopper previewing cars prior to going to a dealership.

The third-party sites are going to turn the new car side of the business upside down a bit," said Wood.

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