Dealerpreownedshift Towards Online Continues

281 views

Published on

Published in: Automotive, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
281
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Dealerpreownedshift Towards Online Continues

  1. 1. Wednesday, September 6, 2006 Issue 5 VOLUME 1 ISSUE 5 Shift toward online ads continues It’s no secret dealers increasingly favor the Internet with their advertising dollars, but 32 percent of those we polled say in the past year they’ve taken that money out of newspaper ads, historically the medium of choice for auto retailers. Meanwhile, 41 percent of dealers say they’ve moved more of their ad money online during the past 12 months while only 7 percent say they’ve shifted more to newspapers. The poll reflects what’s happening generally in the industry. Franchised dealers spent $7.75 billion on advertising in 2005 and their Internet ad buys rose 3.2 percent from 2004, according to the National Automobile Dealers Association (NADA) 2005 Industry Analysis. The past decade also saw the average dealership's ad expense allocation for television rise 22 percent and for direct mail 32 percent. Nationally, ad spending on newspapers dropped a whopping 39 percent, although NADA notes many newspapers provide Internet used-car advertising. In 2005, the typical dealership spent 9.9 percent of its ad budget on the Internet, an increase from 6.7 percent in 2004. The average Internet ad expenditure for all dealerships was $35,738 and for those selling more than 750 units, $69,249. That compares with average newspaper spending of $118,790 and $219,706 for dealerships selling 750 or more vehicles. Fifty-seven percent of dealers we polled say the Internet is their dominant choice for ads after newspapers, 27 percent say radio is their second choice and 11 percent choose television. Only 2 percent of dealers we polled say they’ve cut back or eliminated online ads. [PRINTER FRIENDLY VERSION] Powered by IMN™

×