Posted October 2, 2012 by Steve Young
Borrell Associates reports in the article, “2011 Local Automotive Advertising Outlook” that in the last few years’ auto dealers have been shifting ad campaigns to gear more towards audiences on internet. From 2009 to 2011 the auto industry spent 32% of the advertising budget online at approximately $7.3 billion. Next being newspapers at 22% with $5 billion and TV at 10% with $2.3 billion. Considering that the auto industry is the second biggest advertiser (first place going to cinema), where they put ad’s up is important information for all businesses.
So, who’s looking at these advertisements?
In the article “Mobile and Video Speak to Luxury Shoppers” by eMarketer.com, wealthy people are more likely to watch video advertisements on a phone than the general population. When considering purchasing a car an affluent consumer tends to research a product using video on a smart phone. In a survey conducted by NowResearch, in April of 2011 42.6% of affluents making $500K+ annually access the Internet on their mobile phones every day. Whereas decently well off people making $200K – $500K annually access the Internet via phone 37.5% daily. And a considerably less percentage for the general population at 20.3% surf the web on a phone every day.
An automotive study by Google, Compete and Polk supports this. The research found that 30% of luxury car shoppers watched videos on their mobile phones prior to a purchase. And luxury car shoppers were twice as likely as volume car shoppers to watch consumer-generated online video on their PC and on their mobile device.
About Steve Young
Steve Young is the Director of Product Marketing at SmartShoot. He enjoys writing about marketing, design and product development. Although he shares the same name as a famous quarterback he unfortunately does not share the same bank account, so please throw him a bone and share or comment on his posts. Connect with him on Twitter and Google+.
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