New Car Dealers Plan More Online Ads in 2007

Nearly two-thirds of car dealers said they will increase their online advertising budgets in 2007, a recent Cars.com dealer poll found.
The results echo online advertising expenditures reported by eMarketer.com, which expects car dealers nationwide to spend $1.9 billion on Internet marketing in 2006 — more than twice what they spent in 2004.
The group projects a 42 percent increase in 2007.
In the October issue of Cars.com’s monthly DealerADvantage newsletter, dealers were asked to share their advertising plans for the new year.
More than 20 percent said they will maintain their current spending levels, while 18 percent expect to spend less.
“Dealers increasingly recognize the value of Internet advertising and the exceptional return on investment it offers, particularly when compared to radio, outdoor and direct mail programs,” said Mitch Golub, president of Cars.com.
“Unlike these other media, effectively placed Internet advertising reaches more in-market car buyers and drives more high-quality traffic to dealer stores.”
Gains in online advertising reflect gains in online automotive Internet users (AIU), Golub said.
He noted that consumers now spend as much as 30 percent of their media time online.
“Dealers increasingly rely on the Internet for the innovative, cost- effective marketing tools that no other medium can deliver to merchandise their inventory and build brand awareness,” Golub said.
“As more car shoppers spend more time on the Web looking for automotive information, dealers should invest in well-integrated Internet campaigns to reach shoppers across the full spectrum of their online activities. Effective programs include lead generation, display advertising, classified listings and search engine marketing to provide dealers with the greatest online reach and visibility.”