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Automakers to increase online ad budgets
Newspapers are likely to lose out as car dealers increasingly shift their advertising spend to online media next year.According to a study carried out by Cars.com, auto dealers are likely to increase their online advertising budgets to $1.9 billion (£1 billion) in 2007 – which equates to more than double that spent in 2004.
More than a fifth of car sellers plan to spend as much or more on this form of marketing.
"Dealers increasingly recognise the value of internet advertising and the exceptional return on investment it offers, particularly when compared to radio, outdoor and direct mail programmes," said Cars.com's president, Mitch Golub.
"Unlike these other media, effectively placed internet advertising reaches more in-market car buyers and drives more high-quality traffic to dealer stores."
The shares of several newspaper companies dropped following the release of the report, according to the Sacramento Business Journal. McClatchy shares dropped by 3.5 per cent, or $1.50 (£0.77).
Ford, one of the big three US carmakers and one of the most significant advertisers,
plans to boost its own online brand presence with internet video spots.
News and Public Relations news posted on 28 November 2006
