Auto Industry Banks on Internet Advertising
You might notice by now that the Marketing Pilgrims appreciate numbers about online spending. In particular I like the ones that capture the interplay between the on and offline world.
How is this being done? I’m sure there are other examples but Google has put their technology in certain models of cars. They are also planning to put driving directions via Google Maps at the gas pump. And when I did a search to see what people near me are searching for online, I was surprised how many searches are for cars by specific brand name and location. This is an opportunity.
There’s a new study by the Kelsey Group talking about online auto advertising. Budgets are rising from 5% this year to 13% in 2011. Money spent for TV advertising is slowing down. Like newspapers, the auto industry is suffering and looking for ways to revive sales, and channeling more into the Internet and less into traditional advertising. ”
Global spending on automakers and services will most likely hold steady at about $40 billion. Less of that will be going towards magazine, tv, direct mail and other advertising. That’s not to say that they aren’t still putting money into TV and cable advertisements but the spend is slowing.
“Automakers, including their local dealers, have increased internet spending fourfold since 2002, according to TNS Media Intelligence — to $739 million last year from $175 million five years ago…”
– TNS Media Intelligence
Kelsey Group estimates automakers’ 2008 U.S. ad spending will be flat or down slightly. CEO Neal Polachek said carmakers will shift more dollars online and to out-of-home, with declines in TV, magazines, newspapers and direct mail.
Most notable is Hyundai – they doubled their online ad spending for next year.
“Bob Schnorbus, chief economist at J.D. Power & Associates, predicted Americans next year will buy between 15.7 million and 15.8 million new vehicles…” and more of them will be smaller, fuel efficient cars. As long as gas prices are high, this looks like an opportunity for GM and others focusing on that market. I prescribe an SEO blog that focuses on keywords and inventory while educating people about fuel efficiency (see Auto Blog Green).
Individual dealerships could have a blog but I really see a network of blogs. Since I’m not familiar with the industry I’m not sure who’s doing it but the real estate market has certainly caught on to this.