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Wednesday, July 5, 2006

Auto Dealers Relish Online Advertising Opportunities

Posted by @ 9:18 pm
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Auto Dealers are recognizing the immense potential that lies in Internet marketing, continuing to shift more of their overall advertising budget into the online market.

Internet advertising revenues continue to break records with $3.9 billion being spent in the first quarter of 2006, a 38 percent increase over Q1 2005 at $2.8 billion (Interactive Advertising Bureau, May 2006). Many car dealers are part of this surge in online advertising, and are focusing on moving away from traditional forms of advertising such as television, radio and newspapers, according to a recent report released by the National Automobile Dealers Association.

Internet advertising has gone from being non existent for car dealers in 1995, to the average dealer spending nearly 10 percent of their advertising budget on paid search and other online marketing programs in 2005, up from 6.7 percent in 2004. The average car dealer spent $36,000 on Internet advertising in 2005, and larger dealers that sell over 750 new vehicles each year spent approximately $69,000.

The Internet has become a powerful tool in extending the reach of other mediums (see “The Internet: A Top Contender in the Mass Media Market“), and is also having considerable impact in shaping consumers offline spending patterns (see “Canadian E-Commerce Market Set to Boom“).

Greg Stuart, CEO, Interactive Advertising Bureau comments, “The steady growth of online advertising is a clear indication that marketers continue to believe in the opportunities and effectiveness that this medium delivers in reaching and engaging their consumers.”



Rene LeMerle Rene is the marketing manager of ineedhits.com - a global search engine marketing company. He also leads the marketing for Gooruze.com - a web 2.0 style community for online and digital marketers. Rene has been in the industry since 1997 with much of that time spent helping businesses embrace the best of the internet and digital world.

View Rene LeMerle's profile






Discussion (1 - comment)

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By Carson - May 29, 2007




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