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BizReport : Advertising archives : November 15, 2009

Forecast: Short-term rebound for auto advertisers

Automakers and auto advertisers may push a bit more cash into the online realm in 2010, but according to one forecast, the upturn won't last long. Bad news for publishers and content companies with ties to the auto industry.

by Kristina Knight

According to Auto Advertising Outlook 2010: Running on Empty, local online advertising from and/or for automakers will make a slight rebound next year. In 2009 the local auto spend will be just over $3 billion. Next year, the total auto spend will be roughly $19.2 billion with the online portion of the spend jumping to more than $4.2 billion.

This forecast includes display ads, paid search, email and video ad formats.

Although the 2010 expected rebound is to be expected as the global economy begins to rebound, the fact that another slump could be coming for automakers and auto-advertisers is not a good sign for the economy as a whole and for the publishing world in general. Both print and online publications rely on the big spending of automakers around the world; with automakers still struggling to find a new balance, this will likely put other budgets in tight positions.

One good sign: the mobile arena is proving to be a hot property for auto advertisers. A recent Quattro Wireless study found that auto advertisers, along with consumer packaged goods companies, are scoring well with mobile consumers, many of whom are looking for a local company who offers a specific brand rather than looking for generalized brand information.

From auto dealer standpoints, this should be a good indicator of where future ad dollars should go. By targeting local consumers through online and mobile efforts rather than more generalized advertising possibilities, these businesses stand a better chance of finding not only local consumers but in-market and engaged local consumers.

Tags: auto advertising, automakers, automotive, Borrell Associates, mobile marketing, online advertising, Quattro Wireless

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