2007 Online Auto Advertising is on Track to Hit $2.8 Billion This Year

DUBLIN, Ireland--Research and Markets (http://www.researchandmarkets.com/reports/c57346) has announced the addition of the new Borrell Associates Report “2007 Online Auto Advertising” to their offering.

New Borrell report examines an overall slowdown for automotive advertising but a continued surge in the online spending. The online segment is on track to hit $2.8 billion this year, or 7.6 percent of automotive advertising budgets, and surpass $4 billion, or 12.6 percent, in three years.

The days of easy money from automotive advertising are gone for traditional media. Buyers are spending five hours researching vehicles online – and less time with traditional media. And manufacturers and dealers are ploughing more money into their own Web sites, terminating traditional media by delivering price-and-item information directly to consumers.

Automotive grew to a $31 billion advertising category this year on compound annual growth of 3.7 percent in the past five years. Over the next five, however, we are projecting compound growth of just 1.7 percent. Meanwhile, the online portion of automotive advertising will reach $2.8 billion this year – 7.6 percent of all automotive advertising – with a 13 percent CAGR. By 2010 online will hit $4 billion and become the second-largest medium for automotive advertisers, surpassing newspapers, cable, radio, direct mail – everything but broadcast TV.

At the local level things get more interesting. Next year online media will become the No. 1 expenditure for used-car marketers, sur-passing newspapers for the first time. Used-car dealers have pinto online than the manufacturers – 19.6 percent in 2006. Private-party auto advertising has migrated online even faced with 27 percent of that segment now going to online media. The local online marketplace remains in flu programs appear to be faltering. In addition, programming that is based on listing fees and banner advertising is less attractive to dealers than campaigns that can generate excitement about products – such as online video – or can goose traffic to their Web sites