Number of Auto Ad Dollars Spent Online Growing
As authors of an auto blog, we weren’t surprised by the study released today by the Center for Media Research indicating that online ad sales for cars will reach an estimated $2.8 billion this year. That’s about 7.6 percent of all money spent on ads by the industry and a growth rate for online dollars of 13 percent.
The report, generated by Borrell Associates, says online auto marketing will hit $4 billion by 2010. That means the Internet will be second to TV ads only and will surpass the print media, cable, direct mail, and radio. Consequently, ad dollars going into those venues will drop by 20 percent individually, representing a major loss to publishers and execs. (Additionally, more and more used cars are being advertised and sold online.)
Prospective car buyers are going straight to the source, reading manufacturer’s sites and blogs like our own to get the facts on auto purchases in order to be more informed — and better armed — before actually visiting the dealer.
All these trends indicate that the car buying public in the United States is becoming more educated and more savvy than ever before. The catch phrase used to be “let the buyer beware,” but that coud soon become “let the dealer beware.” More information means better purchases and higher customer satisfaction, but it also means slick car salesmen will have to clean up their act and talk straight to their well-informed clients or lose their business to someone who will.