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Re-Balancing Advertising spend on the OEM Level

I have been subscribing to Automotive News for a few years now and I am just so pleased to see the growing coverage on Digital Media and it's impact. 

The most recent issue had a cover story about Paid Search and best practices. Then inside the coverage of the new Google Cars, (congrats to my brother Brian for being quoted in the article) and at least 2-3 other articles and commentaries focusing on the digital space.

What is exciting is not only the coverage but how this type of marketing that all of us on this and other forums have been touting for years has become more mainstream. What we have been pushing as a more cost effective way to meet your customers is seeing traction everywhere.

One of the most telling articles was how carmakers overall are turning to "new age" advertising. 

In the article it quotes how traditional media category spend has dropped at the OEM level. For example GM traditional spend dropped in 2011 from $2.15 billion to $1.77 billion but overall spend went up to $3.06 billion because of a 115% increase in non-traditional spending to $1.28 billion. 

The statistics are similar across all makes and models.

If the OEM is adjusting their overall spend on non-traditional I would think we will see this trend grow on the dealer level. Patrick Morrissey of GM states that now 25-30% of advertising is now is social media and digital space.

I would take a moment to read this article because it reinforces that change is growing. Many of us have had an impact on many dealers educating them on re-balancing their spend and we all are seeing great results for them as this new pattern takes hold.

Keep educating out there and thanks Automotive News for bringing this to the front page.

Let me know your thoughts

Glenn Pasch

COO PCG Consulting

Views: 252

Tags: automotive, consulting, digital, glenn, marketing, news, pasch, pcg


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