Consumers have cut spending and advertisers have followed suit. It affected every ad category and every ad-supported sector of the media industry. According to the Publishers Information Bureau (PIB), total Automotive advertising revenues (cars, motorcycles, RV’s, etc) was down 19.9% in dollars and 23.6% in number of advertising pages when you compare the first 3 quarters of 2008 versus same in 2007. I have to mention that it is proven over and over that those companies able to continue to advertise gain big market shares when the competition shy away from advertising. We are going to get out this economic mess and the winners will be the companies keeping or increasing their advertising presence. Like for the stock market, be daring when the others are fearful (Warren Buffet).
2 Responses to “Automotive Sector Ad Revenues Down.”
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Why not use the 34 billion that may be given to the automakers, instead be used as government rebates to the citizens of the USA when buying US built automobiles. That will keep the automakers sales up and give the average joe a big break when buying a new US built automobile. That will also control where the 34 billion is going instead of having to bail out the auto makers in another year or so.
True, Cyril, but this is the classic chicken-egg argument, yes?
I think the golden lining in this crisis will be to see companies develop much more effcient marketing tools- a reduction in blind advertising spending, and those who prosper will enact a much more targeted approach. The marginal revenue gained via unlimited advertising has LONG lagged behind the marginal expense, and the day of reckoning has arrived;
Let’s be honest- how much marginal revenue was Honda generating via their F1 program? Yes, I know there is brand-polishing, but at some point, you have to ask the average Honda consumer if they are even aware that Honda had a presense in F1…….
There must be more direct accountability in marketing going forward- the days of stupid spending must be reigned in, and sharper minds will give us more value for fewer dollars.
Good example with Warren Buffet- look at his marketing of Berkshire- incredibly targeted (thank you shareholders, everyone else go away- lol).