By: E&P Staff
Classified Intelligence projects that 2007 is going to be the year of video for automobile advertisers, according to a comprehensive report on auto advertising.
The 67-page report provides anecdotes from auto advertising experts from Cars.com, AutoTrader.com, Gabriels Technology Solutions, Morris Digital Works, and Adicio (which sponsors the report).
“Video raises the bar for everyone, and all classified advertising publishers will have to deal with it to stay in the game,” said Jim Townsend, editorial director of Classified Intelligence, in a statement. “Consumers are going to demand high-quality video from auto manufacturers, dealers, and ad-site operators. But sites will have to offer consumers the ability to post video about cars or about their own car for sale — just as YouTube does now.”
In 2005 auto dealerships spend roughly $8 billion on advertising in the U.S. Analysts believe that number “dropped significantly” in 2006.
The report points out that a J.D. Power and Associates study found the percentage of buyers finding new vehicles in newspapers is dropping, from 14% in 2002 to 7% in 2006. Meanwhile buyers are conducing their searches online: 8% in 2002 compared to 16% in 2006.