No slowdown online
... After consistently leading the US in advertising spending, the automotive sector has dropped into the number two spot behind retail. Ad spending in the sector is going in reverse—except on the Internet.
According to figures published in the new eMarketer report, Automotive Marketing Online: Negotiating the Curves
, even as new-vehicle sales decline, automotive marketers will spend nearly $3 billion online this year, up 21.6%.
By 2012, automotive online ad spending will top $5.6 billion.
When eMarketer asked Scott Keogh, chief marketing officer at Audi, how much the automaker was increasing its online budget year-over-year, he replied, "We more than doubled our online ad budget in 2007 to about $1.2 million, and it looks like we'll double it again in 2008."
Auto marketers are changing media lanes and following their market.
Research from Capgemini shows that 80% of consumers now consult the Internet at least once during the car-buying process. The firm reported the percentage was 71% in 2006 and 64% in 2004.
In fact, recommendations from family and friends are being replaced in importance by online customer reviews.
Capgemini found that shoppers are now looking for opinions and reviews from total strangers about specific brands, makes and dealers, as well as to discuss their own impressions and experiences.
A joint comScore and the Kelsey Group study showed that 78% of Internet users who read an online review in the automotive category said it influenced their offline purchase decision.
To see what else lies down the road for the industry, download the new eMarketer report, Automotive Marketing Online: Negotiating the Curves
After consistently leading the US in advertising spending, the automotive sector has dropped into the number two spot behind retail. Ad spending in the sector is going in reverse—except on the Internet. Auto marketers will spend nearly $3 billion online this year, up 21.6%
The Automotive Marketing Online report
analyzes the trends that are driving one of the largest advertising sectors onto the Internet, at full speed.
Auto advertisers are following their market. Research shows that eight out of 10 consumers now consult the Internet at least once during the car-buying process.
Nevertheless, though automakers and dealers see the Internet as cost effective, measurable and in some ways better than traditional media, the channel doesn’t get a free ride. Marketers are monitoring their online executions and technology as closely as they do older, established ad vehicles to ensure that all touch points work in sync.
Key questions “Automotive Marketing Online
” report answers:
Where are automotive manufacturers spending their advertising budgets?
How will the economy affect car sales?
Are dealerships lagging in adopting Web 2.0 tactics?
How has consumer behavior online been influenced by social media?
What can dealers do to boost conversion rates from online inquiries?
Do consumers really want to buy cars online?
And many others…
eMarketer Reports—On Target and Up to Date
The Automotive Marketing Online report
aggregates the latest data from marketing and communications researchers with eMarketer analysis to provide the information you need to make smart, accurate business decisions. Price: $695.00
ABOUT THE AUTOMOTIVE DIGITAL MARKETING COMMUNITY
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serves Car Dealers and their management teams, Internet Sales Managers, BDC Managers, Marketing Managers, OEM Interactive Media and eBusiness Managers, Automotive Advertising Practitioners, Web Site Managers, Developers and Designers, Automotive CRM, Lead Management and Information Technology Suppliers as an online exchange for strategy, tactics, best practices, files, resources and contacts within the auto industry.
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