Automakers steer more ad dollars online

Though automotive ads have seen a slight decline in overall spending, the industry is still the largest spend for United States consumers, with $21 billion in overall spending. How are they doing this?

by Kristina Knight

By thinking outside the box and putting more advertising dollars online. With traditional media outlets from television to newspapers to radio shrinking, auto dealers and makers are shifting more of their dollars online. They include microsites, mobile marketing efforts, SEM and digital advertising efforts as a way to increase brand recognition and get information to users in a new and innovative way.

According to a new report from eMarketer, the online shift will grow even larger in 2007. They predict the automotive category - makers, dealers and after-market vendors - will spend more than $2.5 billion in online ads, making up roughly 14% of the online ad spend. Total online spending is expected to reach $19.5 billion in 2007.

Search marketing will likely account for the bulk of the advertising, with an expected $1 billion spent in that area alone.

Not including search marketing, two of the "big four" automakers - General Motors and Ford - increased their online spending 60% and 20% respectively from 2004 to 2005. Smaller automakers Nissan and Hyundai also increased online advertising in an effort to draw more consumers to their brands.