jhmcarsct
07-24-2008, 05:59 PM
eMarketer has a new report out today, showing that auto ad spend is sinking as fast as new car sales, but is up for digital. The only bright spot in auto ad spending is online. Internet spending was up 57.9% last year, to $441.6 million. From the report:
Automakers have traditionally been the biggest advertisers in the country. General Motors is the fourth-largest advertiser in the US, and the company spent $535 million in the first three months of 2008, according to TNS data cited in a July 2008 Media Life article.
GM spent $2.1 billion on ads last year, which was the third year in a row of lower ad spending for the company.
Last year total auto ad spending was down 10.8%, to $12.3 billion, according to Nielsen Monitor-Plus data cited in the Detroit Free Press article.
Looking at the ad spend of General Motors two things leap out.
The company is scaling back its advertising in every area except online, which in 2007 was up 79 percent over 2006. Further, GM earlier pledged to shift half of its ad spend to online by 2011.
In the first quarter of 2008 online advertising is only nine percent of overall ad spend which is about seven times smaller than the amount GM spent on television in the same period.
Online is a small but rapidly growing market. Some suggest that online ad spend will surpass television in less than ten years. For more on the report: Auto Ad Spending Down, Except Digital (http://www.emarketer.com/Article.aspx?id=1006426&src=article_head_sitesearch).
Automakers have traditionally been the biggest advertisers in the country. General Motors is the fourth-largest advertiser in the US, and the company spent $535 million in the first three months of 2008, according to TNS data cited in a July 2008 Media Life article.
GM spent $2.1 billion on ads last year, which was the third year in a row of lower ad spending for the company.
Last year total auto ad spending was down 10.8%, to $12.3 billion, according to Nielsen Monitor-Plus data cited in the Detroit Free Press article.
Looking at the ad spend of General Motors two things leap out.
The company is scaling back its advertising in every area except online, which in 2007 was up 79 percent over 2006. Further, GM earlier pledged to shift half of its ad spend to online by 2011.
In the first quarter of 2008 online advertising is only nine percent of overall ad spend which is about seven times smaller than the amount GM spent on television in the same period.
Online is a small but rapidly growing market. Some suggest that online ad spend will surpass television in less than ten years. For more on the report: Auto Ad Spending Down, Except Digital (http://www.emarketer.com/Article.aspx?id=1006426&src=article_head_sitesearch).