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Dealer Shift Towards Online Tech
1. AutoRemarketing http://www.autoremarketing.com/ar/news/print_story.html?id=7549
Dealers Shift Toward Online Technology, Marketing
March 10, 2008
PRINCETON, N.J. — More and more dealers plan to start using Web 2.0
technology in their advertising campaigns, and most intend to increase spending
on Internet marketing in the next year, according to a recent study.
A survey from The Kelsey Group indicated that 59 percent of dealers said they
would utilize Internet video on their Web sites in the next 12 months, versus the
33 percent who already use the technology.
Additionally, the number of dealers who implement online customer ratings and
reviews is expected to rise from 29 percent to 43 percent, officials indicated.
Meanwhile, 33 percent of respondents indicated they will use social networking
sites, an increase from 15 percent.
"These findings point to a significant disruption in the auto dealer advertising
space," explained Neal Polachek, chief executive officer of The Kelsey Group.
"There are valuable opportunities for traditional and new media companies that
tune into dealers' adoption of Web 2.0 technologies and align with dealers' online
media-buying intentions," Polachek added.
Dealers are also shifting the manner in which they advertise. Sixty-two percent
of respondents claimed they plan to boost online media spending in the next 12
months. Only 17 percent said they will do the same for traditional media.
Likewise, only 8 percent of dealers intend to cut online spending, while 46
percent will decrease traditional media spending.
The Kelsey Group gathered information for the study through an online survey in
February. The next study is scheduled for the fall.
For more information, visit www.kelseygroup.com.
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