Auto dealers shift gears to Internet advertising
Auto dealers continue to shift money away from traditional advertising programs such as TV, radio and newspapers and into more Internet marketing programs, says a new report from the National Automobile Dealers Association.
In 1995, auto dealers dedicated none of their advertising dollars to interactive and Internet marketing. But in 2005, the average dealer spent 9% of their advertising budget on paid search, third-party lead generation sites and other web marketing programs, according to the association. That compares to about 6.7% in 2004.
In 2005, the average auto retailer spent about $360,000 on all forms of advertising, with large dealerships that sell more than 750 new vehicles each year spending about $750,000, the association says.
A typical dealer spent about $36,000 on Internet advertising in 2005 with larger dealers averaging about $69,000.
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