Posted March 26, 2007 5:20 pm by with 2 comments

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Research and Markets writes up eMarketer’s new report on the future of automotive marketing. They predict a $1.1 billion aggregate spend on search marketing (SEO and “paid ads”).

That’s a pretty big number—but I’m not impressed. Why not?

Number one, the press release touting their new study starts off by noting that the automotive industry spends $21 billion in advertising. Granted, the automotive industry does lend itself better to offline advertising in many ways, but to spend 5% of your marketing budget in SEM doesn’t seem like very much.

Number two, eMarketer, author of the study, also notes that the auto industry plans on spending more than twice that ($2.54 billion, to be exact) on non-search-related Internet marketing.

They probably should have stuck with the other prediction in the press release: the automotive sector will comprise nearly 13% of online advertising spending this year (estimated total spending: $19.5 billion).

Personally, as a search marketer, I think that the automotive industry would do well to divert more of their budget to search marketing and online reputation management to make sure that the rest of their $19.9 in offline and online advertising is being put to good use.

  • It sure feels SEM has been stuck at 5% of total spend for a long time.

  • Sometimes when I see statistics like this I feel like getting another job. Its hard to believe that after all this time that marketers still do not see the value of the web.

    By the ways if they spend more on reputation managment I would be happy to handle it for them and I will only charge 1/2 billion:)