Auto Industry Revs Up Online Spending

• Posted: Tuesday, June 17, 2008
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• Author: pradhana
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• Filed under: Ad Spending, Internet Advertising

No slowdown online

After consistently leading the US in advertising spending, the automotive sector has dropped into the number two spot behind retail. Ad spending in the sector is going in reverse—except on the Internet.

According to figures published in the new eMarketer report, Automotive Marketing Online: Negotiating the Curves, even as new-vehicle sales decline, automotive marketers will spend nearly $3 billion online this year, up 21.6%.

By 2012, automotive online ad spending will top $5.6 billion. When eMarketer asked Scott Keogh, chief marketing officer at Audi, how much the automaker was increasing its online budget year-over-year, he replied, "We more than doubled our online ad budget in 2007 to about $1.2 million, and it looks like we'll double it again in 2008."

Auto marketers are changing media lanes and following their market. Research from Capgemini shows that 80% of consumers now consult the Internet at least once during the car-buying process. The firm reported the percentage was 71% in 2006 and 64% in 2004.

Read more - eMarketer

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