As the auto industry continues to shift significant dollars to the Internet, the category is expected by next year to claim 15 percent of all online media and spending.
That's according to a new report from eMarketer, which predicts that by 2007, automotive advertising will reach 2.67 billion, which is 15 percent of the expected $17.8 million in total online ad dollars. Currently, the top 10 auto manufacturers spent just 2.5 percent of their total ad dollars online from January to November last year, says the report.
The predicted spending surge, while significant, would seem to reflect recent trends in the automotive category. Top automotive content sites have reported inventory sellouts, and brands like Ford have publicly declaring their intention to dramatically increase their online ad budgets.
The eMarketer report, Automotive Online, Gearing Up for Greater Spending, says that auto manufacturers, facing financial troubles, are not finding new dollars to allocate online, but rather are moving dollars from other places. "Automotive advertisers are gearing up for an online advertising surge, but it's going to come at the expense of other media", said the report's author, eMarketer analyst Lisa Phillips.
Phillips said one of the main reasons that automotive companies are expected to make such a shift is changing consumer research habits. Nearly 70 percent of consumers use the Web at some point in their automotive purchases, the report found.
In the face of tight inventory an automotive content sites, brands already are testing new tactics. The report cites behavioral targeting - the practice of targeting in-market car buyers outside of car-related content, based on their Web-surfing history - as playing a key role for these companies going forward.
Already, auto brands also are showing a willingness to embrace alternative online media tactics, says the report. For example, both Audi and Volvo are sponsoring National Public Radio podcasts, and Chrysler has build advergames promoting its Town & Country minivan to moms.
