The ad buy will promote its C-Class sedan and M-Class premium SUV, Automotive News Europe reported.

Instead of making local ad buys, Mercedes will redirect advertising money to pay for nationwide TV spots.

"There is just so much TV advertising out there, and we have to tell our story in compelling ways," Steve Cannon, vice president of marketing for Mercedes-Benz USA, was quoted as saying.

Luxury car rival BMW, meanwhile, will spend no more than a quarter of its advertising dollars on TV spots, an executive said.

Jack Pitney, BMW's vice president of marketing, said the company will focus on Internet advertising, interactive marketing and newspaper ads.