It’s no secret that the auto industry is recovering. Chrysler is reporting 20 percent sales gains in the U.S. over last year and Toyota is surging back from its tsunami-hampered supply problems in 2011. What’s next? Advertising, and more money to spend on it.
A new study released by Borrell Associates predicts that spending on auto advertising this year will raise by roughly 14 percent. Don’t get your hopes up for year-round superbowl commercials with grandiose special effects though. If Borrell’s release is correct, much of the new ad money will be spent on targeted online marketing.
Banner ads are expected to garner another $11.9 billion this year according to CEO Gordon Borrell’s forecast. Part of the reason those ads are becoming more attractive is that an advertiser can enjoy marketing directly to consumers at a level unprecedented by other mediums. Data about how those ads are consumed is also more concrete, which means a company paying to spread product awareness can glean important data that can’t come from running print ads.
Borrell’s report estimates that 90 percent of the new revenue being put into advertising will pour into online, and most of that (and spending overall) will probably occur between May and August, when Memorial Day sales and warm weather promote new car buying.
[Source: Automotive News]