Stellantis Reviews U.S. Advertising For Select Brands

According to Automotive News, Stellantis is conducting a major review of its U.S. advertising accounts for five key brands: Alfa Romeo, Chrysler, Dodge, FIAT, and Ram. This strategic review comes as the automaker implements steep cost-cutting measures while dealing with slumping sales and market share losses in the U.S.

Stellantis Advertising Agency Review Driven by Cost-Cutting – 

Stellantis’ procurement department is leading the review and aims to assess the effectiveness of current advertising strategies. Omnicom’s GSD&M currently handles creative work for Dodge, while Stagwell’s Doner manages advertising for Ram. However, Jeep® is not involved in the review process. Jeep’s creative advertising continues to be led by Highdive.

Raj Register, the new Chief Marketing Officer (CMO) for Stellantis U.S., confirmed the review by saying, “As a matter of standard procedure, we put our agencies through reviews when timing dictates. As a general rule, we are not beholden to the ‘one agency fits all’ model, instead choosing to give interested agencies the opportunity to bid on creative opportunities across our U.S. brands.”

Stellantis’ Advertising Budget for U.S. Brands – 

In terms of advertising spend, Jeep leads the way with $170 million invested in U.S. measured media for the first half of 2024, followed by Ram with $124 million. Dodge, Chrysler, Alfa Romeo, and FIAT have significantly lower budgets, with Dodge spending $32 million, Chrysler $6 million, Alfa Romeo $3 million, and FIAT only $2 million during the same period.

Sales Challenges and Market Share Declines – 

The advertising review comes at a challenging time for Stellantis. The company has experienced significant sales declines across most of its brands. Total U.S. sales fell by 21% in the second quarter of 2024, with a 16% drop during the year’s first half. These declines are happening amidst several executive departures and criticism from United Auto Workers (UAW) leadership over job cuts. Additionally, dealers have expressed concerns, describing Stellantis’ decision-making in 2023 as “short-term” and “reckless,” according to Automotive News.

Stellantis’ History of Shifting Advertising Accounts – 

Stellantis has a history of moving advertising responsibilities between agencies. Detroit-based Doner has benefited from various assignments, particularly after Stellantis cut ties with The Richards Group in January 2024, ending a 15-year relationship. GSD&M, based in Austin, Texas, continues to lead Dodge’s creative efforts, including the recent plug-in hybrid (PHEV) Dodge Hornet R/T campaign.

Raj Register’s Leadership and Marketing Restructure –

Raj Register took over as Stellantis U.S. CMO in June 2024, following her previous role at Sysco Corp. She replaced Marissa Hunter, who left the company earlier this year. Under Register’s leadership, Stellantis restructured its marketing department, combining marketing, social and digital media, website management, analytics, and paid media operations into a centralized unit to support a more results-driven culture.