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Forecasts made by Virginian-based advertising consulting firm Borrell Associates suggest national and local American automotive industry advertising spending will increase by almost 14 per cent this year to US$30.8 billion ($29.8 billion) with about 40 cents of every media dollar being channeled toward digital media.

The 37-page Borrell Associates report into ad-spending patterns for manufacturers, new and used car dealers, dealer groups and private party sellers shows the trend toward digital media expenditure will continue “largely unabated” at the expense of more traditional media such as print, radio and direct mail.

The report examines trends in spending data for 11 marketing channels – newspapers, radio, TV, cable, magazines, outdoor, cinema, online, direct mail, directories and telemarketing – and spending patterns by five types of auto advertisers – manufacturers, franchised dealers, independent dealers, dealer associations and private party sellers.

Borrell Associates CEO Gordon Borrell says they foresee the industry, including dealers and dealer associations, spending US$11.9 billion ($11.5 billion) on search buys and online banner ads – close to a 40 per cent increase from 2011.

Borrell predicts nearly 90 per cent of that additional boost in spending – an estimated US$3.7 billion ($3.6 billion) – will be allocated for use solely in digital media. “Gone are the days when broadcast advertising dominated the top of the buying funnel,” Borrell said in the report’s summary.




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