Borrell: Auto industry online ad spend to rise next year

Spending by auto manufacturers and car dealers across the U.S. is set to shift up a gear next year, according to new research from Borrell Associates.

by Helen Leggatt

borrell assoc logo.jpg After a few years of idling, and even some stalling, auto advertising across all segments is set to rev up again, rising 4.1% to just over $19 billion in 2010.

When it comes to online, the medium has been paying dividends with much foot traffic to dealerships generated from online campaigns. Online advertising will account for around 5% of total ad spend this year.

Borrell's latest study, "Running on Empty", forecasts that auto manufacturers will increase online spending by 14% next year, while new- and used-car dealers will up theirs by around 9%.

Video and audio offerings, in particular, have proven themselves popular with consumers online seeking out as much information on how a car looks, sounds and handles. According to Borrell, "All the pieces are in place for a break-out to more common use next year."

Earlier this year, PointRoll released data showing that rich media ads outperformed other formats within the auto advertising segment.

Tags: ad spend, automobile industry, car dealership, marketing budgets, online advertising, online video