410 likes | 562 Views
Automotive: Part III. Internet’s Effect on Advertising. John Potter VP Interactive Revenue Development Director Radio Training Academy jpotter@rab.com. Here’s What We’ll Cover…. Automotive slow down Auto ad budgets Where dealers are advertising Lead buying Win back the bucks.
E N D
Automotive: Part III Internet’s Effect on Advertising John Potter VP Interactive Revenue Development Director Radio Training Academy jpotter@rab.com
Here’s What We’ll Cover… • Automotive slow down • Auto ad budgets • Where dealers are advertising • Lead buying • Win back the bucks Goal’s For Today
FFF Error • Foreign • Fuel • Financing Automotive Webinar
Automotive Drives America • $924 billion in sales in 2007 • 23% of total retail sales in the US • 1.3 million employees • Another 6.6 million related employees • US Largest ad category - $19.8 Billion Sources: US Dept. of Commerce, 2008; University of Michigan; Advertising Age, June, 2007 Automotive Webinar
Automotive Drives America A Sales Slowdown Total US Units Sold In Millions 16.5 16.1 15.7 Sources: JD Power & Associates, January, 2008 Automotive Webinar
Automotive Drives America A Sales Slowdown • Domestic off 15.5% in August • GM down 20% • Ford down 26% • YTD industry down 11.2% • Pickups and SUVs are stalled • Chrysler no longer leasing • Toyota & Honda short on small vehicles • Nissan up 14% Sources: New York Times, September, 2008 Automotive Webinar
Automotive Drives America A Sales Slowdown Ad spending down 6.1% through May DownUp Toyota GM Ford Chrysler Honda Nissan Sources: Advertising Age Automotive Webinar
Turning To The Internet Moving Traditional Ad Budgets • GM moving half of its $3 billion • Hyundai’s VP Marketing: “Online may be more important than spot.” • Audi more than doubled online advertising Sources: Advertising Age, August, 2008; e-Market, June, 2008; Automotive Webinar
Turning To The Internet Moving Traditional Ad Budgets 21.6% -6.1% Sources: Advertising Age, August, 2008; e-Market, June, 2008; Automotive Webinar
Turning To The Internet Moving Traditional Ad Budgets • 2.1 billion automotive online impressions in July • 5.5% of all Internet impressions in the US Sources: Nielsen NetRatings, July, 2008 Automotive Webinar
Turning To The Internet Moving Traditional Ad Budgets • 80% of consumers consult the Internet at least once during the car-buying process (up from 71% in 2006, 64% in 2004) • Internet reviews are replacing recommendations from family and friends • 78% of Internet users who read an online review said it influenced their purchase decision • 40% of leads are from the Internet Sources: Capgemini, 2008; comScore/Kelsey Group, 2008; RAB, 2008 Automotive Webinar
Online Advertising Types • Classifieds • New • Used • Display (banner ads) • Search / Keywords • Rich Media • Video • Audio • Animation • Promotions • Micro-sites • Lead Generation Automotive Webinar
CBS Dallas Classifieds – Local
Classifieds – Local Columbus Fizmo
Mineola, TX Classifieds – Local
WOOD-TV,Grand Rapids Classifieds – Local
Columbus Dispatch Classifieds – Local
Vehix –White Label Classifieds – Local
Clear Channel Search / Keywords
Lead Generation • Automotive sites collect leads • Sell to dealers • Screened • Address check • Phone check • 3rd Party check • Not screened • Exclusive • Non-exclusive • $25 per lead average Automotive Webinar
Lead Generation Marty Johnson Internet Manager Nelson Auto Group
Lead Generation • Classifieds sites • Paid leads sites • Factory site • Dealer site Automotive Webinar
Win Back The Bucks Recapturing Auto Dollars • Promote the value of your on-air product • Use marketing information • Develop an automotive Internet strategy • Online advertising • Online classifieds • Online search / keywords • Online promotions • Contests • Micro-sites • Custom ideas (virtual test drive, “find the key” video game, online used car auction…) • Online directory Automotive Webinar
Thank you for joining us! You will be receiving an e-mail with a link to download a PDF copy of these slides, glossary Please share your thoughts in the evaluation form RAB Member Response 1-800-232-3131; member_response@rab.com John Potter jpotter@rab.com Automotive Webinar