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Auto Industry Revs Up Online Advertising

Written on

Feb 16, 2006 

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Sarah Novotny  |

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Auto Industry Revs Up Online Advertising

Automotive advertisers are following the trends and making the switch to online advertising at the expense of other media, according to a new eMarketer report on automotive online marketing. According to the study, the top ten automotive advertisers spent only 2.5% of their total ad spending from January to November 2005 online. The eMarketer report estimates that auto companies will spend $2.7 billion on online advertising in 2007 compared to the $1.4 billion spent in 2005. Furthermore, the auto industry will capture 15 percent of U.S. online advertising spending by 2007 compared with 11 percent in 2005.

In today’s press release, Lisa E. Phillips, eMarketer Senior Analyst and author of the new Automotive Online: Gearing Up for Greater Spending report said, “The industry’s foot is definitely coming off the brakes and onto the accelerator this year “Automotive advertisers are gearing up for an online advertising surge, and it’s going to come at the expense of other media.” Phillips also commented, “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. 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.”

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.

Tags: case_study and eMarketer

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