To hear Borrell Associates tell it, the internet is going to be awash in online ads, if it isn't already. Borrell has just reported that, at $22.6 billion this year, with an overall increase of 7.2%, from $21.1 billion in 2010 to $22.6 billion this year. The largest dollar increase is expected for online media, which is projected to be up 11% , from $6.6 billion to nearly $7.3 billion. Online now dominates nearly one-third of all auto advertisers’ budgets and is likely to grow as dealers migrate more toward social media and mobile marketing.
While there are certainly no shortage of examples of companies using online marketing tactics and social media to promote their brand, there are also conflicting statistics that show television is unlikely to lose its hold on auto advertisers. Statistics from the Nielsen Co.'s Global AdView Pulse report shows that automotive ad spending increased 20.3% in 2010, with six automotive companies among the top 20 global advertisers in 2010. The highest was TV advertising, which increased to 62% of all ad spend share (the highest on record), radio advertising rose 8.5%, followed by newspapers at 7%.
A Nuanced View
Not to say that either set of statistics are inaccurate. Rather, it appears a more nuanced approach is being taken by some auto advertisers to the benefit of both TV and online. Namely, as most auto manufacturers bump up their television advertising they are also learning to complement it with online ads and social technologies as well.
General Motors, for example, is pursuing such as strategy as it increases its spending on both TV and the Web, the Wall Street Journal recently reported.
Another example is provided by Chevy earlier this year during the Super Bowl. Chevy decided to test OneRiot’s social targeting service for mobile ads, which allows advertisers to reach targeted audience segments, such as mothers or sports fanatics or tech influencers, on the mobile device. Segmentation and targeting are based on audience interest profiles, demographics, social influence and realtime conversations. During the big game, Chevy wanted to target that male US sports fans and car enthusiasts who were talking about football across a network of leading mobile Twitter apps during the game. When the audience checked their app, they saw the ad for Chevy.
