Auto dealerships dropped their overall ad budgets 27%, but increased internet ad spends 45% in the first three quarters of 2009, compared to the same time period in 2008, according to new data from Nielsen.
The data points to an ongoing trend of the auto industry’s continuing shift from traditional to online advertising.
Borrell Associates predicts that U.S. auto manufacturers will increase their online local ad spending 14% in 2010, while new- and used-car dealers will increase their online ad spend by 8.6%.
“The internet already attracts 93% of today’s auto shoppers. The consumer’s reliance on social networking sites to provide information sourced from ‘trusted friends’ vs. an auto dealer or their automotive advertising agency has already been established,” says Philip Zelinger, president of Ad Agency Online. “What is new is the ability for consumers to bypass an auto dealer’s website or online marketing message when purchasing a new or used vehicle in favor of a trusted third party social networking community where likeminded auto shoppers are able to share their shopping experience before, during and after their sale / purchase.” (via Automotive Digital Marketing)
Zelinger instructed his affiliated automotive advertising agencies to shift their focus from conventional automotive advertising media to social networking based marketing channels last month.
Online auto ad companies have been steadily growing their tool sets in response to the increasing demand, writes MarketingVOX. Autobytel, for example, expanded its New Car Leads Program to include inventory-based leads using Vast.com, an automotive search and advertising platform. The system enables dealers’ inventory to be automatically listed across the Vast.com network, which includes automotive sites such as AOL Autos, Overstock Cars, and AutoMedia.
Because the VIN number is included in each inventory-based consumer lead transmitted to Autobytel dealers, the system provides specific information about which individual vehicles consumers are considering. The program is pay-for-performance, and dealers will only pay for the leads that they get.
At the end of September, Autobytel also relaunched its Email Manager program, which features real-time “Dealer Alerts” sent as soon as a consumer clicks on any of the links in an email. Another company that is targeting this industry with email marketing solution is CityTwist, a geo-targeted email marketing company, which recently partnered with Aspen Marketing Services, to provide geo-targeted email advertising campaigns for its automotive clients. CityTwist allows businesses to advertise directly to subscribers within a specific geographic market through email while receiving real-time tracking on open and click-through rates.
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