Automotive Category Driving Increase in Local Ad Spend

A report on NewsFactor predicts that local online ad spending will grow an incredible 48 percent in 2008 to $12.6 billion. Driving this trend are the new favored horses outta the block – paid search and video advertising. But pay attention to this – the Big 3 advertising segments for 2008 are going to be the categories of automotive,
recruitment, and real estate, and of course Election ’08 adding a few extra bucks. 

From ReadWriteWeb: 

Automobile
ads are an especially prime area for growth in the local market,
according to researchers. In fact, The Kelsey Group expects that by
2010 nearly 40% auto advertising will be done via local online and
directional media — an estimated $10.8 billion piece of the pie.

Now that big automotive companies like GM are allowing their regional dealerships to select their own creative and media agencies, allowing them more flexibility in their individual markets. This is especially important in an area where local advertising is so important. And taking $500 million in billings out of the hands of the people in Detroit? That’s cause enough for celebration.

And with powerful issues in the automotive industry like customer retention and other aspects of a so-called upscale product pushing change, this is sure to be, shall we say, the dawning of a new era? ValueClick has put out a white paper with a few tips n’ tricks for effective online advertising in the automotive category, like "planning across a wide range of lifestyle sites" and making sure to optimize. Lesson here being, don’t assume that the Palo Alto mom wants a Hybrid Escape. Prove it first. Then tell her about the promotion at her local dealership — and don’t expect Detroit to pay for it.

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