New report reveals auto makers increasing online ad spending.
A new report from Borrell Associates indicates that US automobile manufacturers will increase their online local ad spending by 14% in 2010. New and used car dealers will also increase their online ad spend by 8.6%. In total, new vehicle online spending will rise by 11.4% over the next year.
This means that spending will total roughly $19.2 billion, which is up from 2009’s $18.4 billion. Although, not as high as in 2008, the predicted spending shows a 4% growth rate from that of 2009, a time with which General Motors and Chrysler declared bankruptcy.
The online ad spend will most likely surpass all other media in 2010 as the main source of new-vehicle advertising. This will be done mainly by email and social networking, while streaming audio and video will become the big “break out” stars.
Also shown in the report is that newspaper and broadcast TV advertising has been hit the hardest, declining 20% this past year. Despite this drop, these outlets are not nearly hit like directories and other print media, which are down roughly 8.1%. These two sources will continue to freefall negatively within the next year. Only cinema advertising is expected to gain the highest growth, by 18% in 2010. This means that the money spent in this medium will jump from $65 million to $77 million by next year.