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Posts Tagged ‘Borrell’

Marty’s Marketing Minutia

Tearful, trendy, traveling and traction?

by on Nov.16, 2009

Borrell Associates Auto Advertising Outlook for 2010

Not good, but not that bad. The respected advertising research and consulting firm, which concentrates on online media annual report, is titled this time “Running on Empty.” Over the years, I have found the company’s predictions accurate, dependable, reliable and prescient.

The report is based on Borrell’s Automotive Table, which monitors local ad spending, by U.S. auto dealer associations and manufacturers and is updated quarterly.

Eleven different sources are used to compile the data into the report.

Rather than rehash the current economic woes, I have opted to focus on their predictions for next year. According to the report, “There are signs of recovery and permanent change ahead, among the observations:

  • 2010 will be better than 2009 for new car marketing, but not by much
  • Dealerships are getting leaner
  • Cars sold be dealer are trending up
  • Manufacturer co-op spending is returning and beginning to rise
  • Independent dealers are finding new sources of revenue
  • Large dealers will continue to gain share in used cars
  • Online “ad spend” will surpass all media for new car advertising”

In the online auto-advertising category, the usual focus by auto brands on display banners, pop-ups and classified listings is dropping by 20%. Conversely, this year e-mail and social networking campaigns have grown by 20%, but the most growth Borrell predicts will come for streaming audio and video.

U.S. Total New Vehicle Ad Spend – 2010

In 2010 Borrell predicts overall ad spending to increase to $19.2 billion, while online ad spending climbs more than 10% to $4.3 billion.

Stay tuned, as Betty Davis said, “It’s going to be a bumpy ride.”