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Borrell: Online Auto Advertising To Grow 26%

A radical shift in the way auto dealers and manufacturers are marketing themselves is pulling advertising money away from TV, radio and newspapers — which have traditionally relied heavily on auto ads to generate revenue — and driving it to digital outlets.
NetNewsCheck,

Revenue from online automotive advertising is expected to grow 26% in 2013, according to a client memo out today from Borrell Associates.

The consulting firm is reporting a radical shift in the way auto dealers and manufacturers market themselves, as they drop print and broadcast in favor of digital. Borrell says a change in the wrong direction could be devastating for print and broadcast, which rely heavily on the segment.

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Borrell predicts that the major media will all see declines in auto advertising, with broadcast TV down 13.8%, radio down 13.4% and newspapers down 8.6%. Directories are also expected to see a 25.6% fall in auto dollars.

Mobile is a big driver behind the shift, according to Borrell. Auto dealers are finding that online inquiries, particularly those generated from mobile devices, were generating more foot traffic in dealerships than other ad choices.

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