Automotive Ads Profit the Internet
by: Guest
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Word Count: 558
In this new era, the high tech age, media has been so
powerful since it is one of those who benefited from the innovations.
Media’s aim is to inform and mediate. Forms of media
include the print (magazines, books, tabloids, broad sheets, journals, etc.),
the audio (radios) and the audio visual (television, movie tapes, etc.).
Nowadays, the most evolving form of media is the internet.
It is currently the most accessible one. With just few clicks, what ever you
need is right in front of you. And just like any other forms, the internet also
acquires profit when its services are used. The only difference is that it
acquires more than any other forms of media.
Selling is one of the dominant features of media. In the
case of the automotive industry, it is used to not just to inform the public on
the latest cars but also to sell cars and parts like the Dodge aftermarket parts.
The most time and space consuming in media are the ads.
But because of this, the internet profits a lot from automotive ads.
The Center for Media Research announced that based on a
latest report from Borrell Associates, automotive ad spending this year will
reach $31 billion. However, for the next five years, total ad dollars will grow
only 1.7 percent as compared to a growth rate of 3.7 percent yearly during the
last five years. The automotive industry’s online spending for this year will
reach $2.8 billion. This is 7.6% of all automotive advertising and this
represents a 13 percent annual growth rate.
According to the report, online car marketing will reach
$4 billion by 2010. This, in effect, will become the second most-used medium
for automotive advertisers, exceeding newspapers, cable, radio and direct mail
and trailing only broadcast TV. During the same period, a 20 percent decrease
on appropriations for offline auto ads in newspapers, direct mail and
directories will be experienced.
For the first time, this year at the local ad level,
online will become the lead marketing channel for used-car marketers. And for
the first time, online will surpass newspaper. The automotive industry is
spending a 7.6 percent total online ad budget; whereas, 20 percent of their
spending to the online channel is appropriated by used-car dealers.
The report further said that this year, 29 percent will be
the spending of their online ad budget on online video and paid search. But by
2012, it will increase that proportion to 76 percent of online marketing. As a
lead-generation tool, the email also rank but banners and other display ads
will decline.
Most shoppers are doing their early research online
through going directly to the manufacturers' Web sites rather than to third
parties such as other companies. With this, it shows that the car sellers
cannot effectively reach the public through the internet. Nonetheless,
eventually, with the fast growing evolution of technology, surely the sellers
will always make a move to effectively sell their products. After all, as
technology changes, everyone adapts to it. And the automotive industry is one
of those which can easily adapt. The various top of the line vehicle
innovations are mere manifestations.
About the Author
Evander
Klum is a Business Administration graduate who hails from
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