More than Half of Auto Dealers to Include Internet Video in Their Marketing Mix Within Next 12 Months, According to The Kelsey Group

New study reveals auto dealers are also rapidly adopting other Web 2.0 capabilities, including online reviews and social media.

Web 2.0 advertising tactics and technologies are gaining traction among auto dealers, becoming an integral element of the marketing mix. Fifty-nine percent of auto dealers say they plan to use Internet video on their own Web sites during the next 12 months, up from the current 33 percent, according to a new study by The Kelsey Group, the leading provider of research, data and strategic analysis on local media, small-business advertising, mobile and vertical market advertising. During this same 12-month period, the percentage of auto dealers using customer ratings and reviews will rise from 29 to 43, and the percentage using social networking sites will rise from 15 to 33.

"These findings point to a significant disruption in the auto dealer advertising space," said Neal Polachek, chief executive officer, The Kelsey Group. "There are valuable opportunities for traditional and new media companies that tune into dealers' adoption of Web 2.0 technologies and align with dealers' online media-buying intentions."

In general, auto dealers are shifting more of their media mix online, with 62 percent planning to increase online media spending in the next 12 months, compared with only 17 percent for traditional media. Moreover, 46 percent of dealers will decrease spending on traditional media, compared with only 8 percent for online media.

Detailed findings from the study will be presented at the first annual Ward's "Automotive Spring Training Conference," presented by Autobytel, March 9-11, 2008, in Tampa, Florida. For more information about this event, visit http://wardsauto.com/springtraining.

Methodology

The Kelsey Group Auto Dealer study was conducted in February 2008 via online survey. This survey of dealer online advertising practices and intentions was performed to identify best practices and trends in dealer use of various Internet advertising types. The sample comprised tier-three dealers (no OEMs or associations), with 71 percent of respondents identified as owner, principal, vice president or general manager. The survey will be conducted again in fall 2008.

About The Kelsey Group

The Kelsey Group is the leading provider of research, data and strategic analysis on directories, small-business advertising, online local media, vertical market advertising and mobile advertising. Founded in 1986, the company has built a reputation as the premier analyst firm covering the directory publishing community and the emerging local search marketplace, providing advisory services (The Kelsey Report(R), Interactive Local Media and Marketplaces), publishing (Global Yellow Pages(TM)), consulting (more than 400 individual assignments) and conferences (71 events). For more information about the firm and its services, visit www.kelseygroup.com.

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