Car Dealers To Increase ’07 Ad Spend

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According to the Cars.com survey, which polled readers of the website’s DealerADvantage newsletter in October, shows that two-thirds of dealers (about 62%) will increase their online advertising in 2007. Meanwhile 20% say they will at least maintain their current advertising budget and only 18% say they will spend less online next year.

eMarketer has projected that car dealers will spend nearly $2 billion online this year and will increase online advertising by 42% in 2007.

“Dealers increasingly rely on the Internet for the innovative, cost-effective marketing tools that no other medium can deliver to merchandise their inventory and build brand awareness,” said Mitch Golub, president of Cars.com. He went on to say, “Unlike these other media, effectively placed Internet advertising reaches more in-market car buyers and drives more high-quality traffic to dealer stores.”

The survey could indicate a change in reported slowdowns in the automotive advertising industry. In September, Yahoo reported that online ad growth had slowed. They blamed part of the slowdown on decreased automotive ad spending.

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ABOUT THE AUTHOR

Kristina Knight-1
Kristina Knight, Journalist
Content Writer & Editor
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Kristina Knight is a freelance writer with more than 15 years of experience writing on varied topics. Kristina’s focus for the past 10 years has been the small business, online marketing, and banking sectors, however, she keeps things interesting by writing about her experiences as an adoptive mom, parenting, and education issues. Kristina’s work has appeared with BizReport.com, NBC News, Soaps.com, DisasterNewsNetwork, and many more publications.