Automakers were among the first to spend big dollars online, and auto Web sites have commanded some of the highest online rates.
But The Wall Street Journal reports that while as the industry cuts costs as well as their brands, spending is leveling off. Traffic to these sites – like Edmunds.com and KBB.com – is also down, as consumers put any car buying thoughts on hold.
Overall traffic to auto research sites was down 2% in October versus last year, with some sites seeing much greater drops. The downturn has also hit companies like Autobytel, an Internet auto-marketing-services firm.
These industry hardships will likely also cause problems for more-traditional media, and specifically for local media outlets, from TV networks to radio stations.
To help capture some of these traditional media dollars, auto Web sites are creating new ad plans and highlighting measurement tools. They’re looking to expand their advertising bases and some are also emphasizing site content that covers car care, playing into the trend of consumers keeping a car longer.
Forrester Research estimates that online auto ad spending will reach $1.3 billion in 2008, up 17% from $1.1 billion in 2007. But the firm expects a big decline in spending on display ads next year.
Read the complete article which includes the top 10 auto Web site ad spends at www.wsj.com.
[Source: Steel, Emily. "Ad Spending on Auto Web Sites Tapers Off," Wall Street Journal, 12/09/2008.]
Tuesday, Dec 9, 2008
Michelle OBrien