Automotive Ads Profit the Internet


by Evander Klum - Date: 2007-05-23 - Word Count: 529 Share This!

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.


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Evander Klum is a Business Administration graduate who hails from Alabama. He enjoys extreme sports and he is also a car racing fanatic. At present, he works as a marketing manager at an advertising agency in Cleveland.

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