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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