In what has become a de facto online upfront, some automakers are looking to close advertising deals with popular auto websites before the second quarter comes to a close - even while auto execs are spending their time this month negotiating upfront network TV agreements in New York, writes BrandWeek (via MediaBuyerPlanner). Prices for online ads are estimated to jump another 18-20 percent in 2006, and show little sign of slowing down. Accordingly, auto execs buy in bulk online because prices will likely rise with time, whereas for network TV they have to buy in bulk to ensure better pricing.

"One of the major reasons the car manufacturers and agencies do upfront online is because the price may go up, the opposite of TV," said Mitch Lowe, CEO of marketing and technology company Jumpstart Digital Marketing, which caters to auto advertisers.

Companies want to get to sites before their competitors, having to avoid sites where other automakers are advertising. "If you don't make that buy, a competitor will," said Meridee Alter, SVP and media director on the Honda account at RPA.

Overall, automakers spend around $15 billion a year on advertising, with 4-5 percent of that going to online ads - a figure that increases 50 percent annually.