Auto Dealer Ad Spending Rises

The NADA said that their member dealers are expected to stay on pace or spend more on advertising this year. 2001 total dealer spending of $6.6 billion was up 3.7 percent from 2000 and pushed dealer spending the closest to factory ad spending - $7.7 billion - in at least five years. Dealers increased spending in newspapers by 7.5 percent and on the Internet by 6.3 percent last year, while they slightly decreased spending on TV, 1.2 percent, and direct mail, 0.7 percent. Paul Taylor, chief economist for NADA, says dealers are optimistic about profits this year. He expects dealer ad spending to stay strong as retailers attempt to woo customers after zero percent financing and as large dealership groups spend more promoting multifranchises. "Advertising will be up slightly," Taylor said, adding there is "the need by dealers to move some customers toward other services as new-car volume slows in the wake of zero percent financing."