Automotive Marketers Rev Up Online
Advertising
Auto industry to account for 15 percent of total US online
advertising spending
FEBRUARY 16, 2006 -- NEW YORK, NY Automotive advertisers are
finally gearing up for an online advertising surge and the
increased online spending will come at the expense of other media,
according to a new eMarketer report on the state of automotive
online
marketing.
"The industry's foot is definitely coming off the brakes and onto
the accelerator this year," says Lisa E. Phillips, eMarketer Senior
Analyst and author of the new Automotive Online: Gearing Up for
Greater Spending report. "Automotive advertisers are gearing up for
an online advertising surge, but it's going to come at the expense
of other media."
Laptop Battery Despite increasing traffic, online advertising among the top 10
auto manufacturers accounted for just 2.5% of their total ad
spending in JanuaryNovember 2005. But thanks to tight online
inventory, higher prices and changing tactics, eMarketer estimates
that auto companies will spend $2.7 billion in total online
advertising in 2007, compared with $1.4 billion in 2005. And by the
end of 2007, the auto industry will account for 15 percent of total
US online advertising spending.
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Thinkpad "The automotive industry is the largest advertiser in the world.
In the US alone, the industry spent more than $17 billion in the
first 11 months of 2005," says Ms. Phillips. "But, despite the fact
that almost 70% of consumers use the Web at some point in their
automotive purchases, the industry has been slow to commit to
online advertising and promotion."
In addition, we use Web beacons, party ad server, to help manage and optimize our online advertising.
Microsoft Ms. Phillips notes that the Internet has turned the idea of an
orderly ad buying process, or "funnel," into ancient history. "With
the funnel effectively dead, behavioral targeting looks like a
light on the horizon," she says. "As auto manufacturers are trying
every gambit to build brands and get their products noticed, most
of the major independent sites offer some form of this technique
and several manufacturers are already testing it."
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Laptop Computers Tactics mentioned in the report include: Audi and Volvo
sponsoring National Public Radio podcasts; Cadillac's five-second
film contest bumping site traffic 358%, according to Promo
magazine; Chrysler targeting 'Road Trip' advergames to moms
interested in its Town & Country minivan; a limited edition of
the Pontiac Solstice selling out within 45 minutes after it debuts
on an episode of The Apprentice; Honda's viral videos for its
Element SUV; General Motors buying ad programming on Mobile ESPN
while Jeep just launched its own mobile phone TV channel; the Jeep
Commander comes with an online sitcom family called the Mudds; Ford
producing an online mockumentary about a Norwegian noise rock band
and tests video on demand.
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Laptop Computer EMarketer's Automotive Online report answers these key
questions:
Where are automakers spending their advertising budgets?
How well does behavioral targeting work in the automotive
industry?
In what ways do consumers use the Internet to buy
cars?
Does the online experience influence consumer
decision-making?
And many more...
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Desktop Computer About eMarketer
eMarketer is "the First Place to Look" for market research
information related to e-business, online marketing and emerging
technologies. eMarketer aggregates and analyzes e-business research
from over 1,700 sources and brings it together in analyst reports
and the "eStat Database" the most comprehensive compilation of
up-to-date e-business and online marketing statistics in the world.
Visit eMarketer for more information.
Notebooks Source: eMarketer
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