Borrell: Digital revs up auto ad spend

Automobile ad spending is finally on the road to recovery. A recent study from Borrell Associates predicted that auto advertising revenues will rise nearly 14% in 2012, to $31 billion—and much of that growth will go toward digital. In fact, digital media is forecast to account for almost 90 percent of all automotive advertising growth this year as dealers and manufacturers spend more on streaming video commercials, targeted social media ads and mobile. “Gone are the days where broadcast advertising dominated the top of the buying funnel, where people dreamed about owning a car, and when print dominated the lower end, where people were ready to buy,” according to Borrell’s executive summary. “The mix has become far more complicated, with digital media continuing to dominate.” The research firm predicted that the auto industry will spend $11.9 billion in online advertising this year, a 39 percent increase over 2011. The increase means an additional $3.7 billion in ad spending compared with the prior year for the industry.

• Online Auto Ad Spend To Rise 39% In 2012 (NetNewsCheck)

• Report Predicts Auto-Ad Spending Will Grow 14% This Year (Ad Age)

• 2012 Automotive Advertising Outlook: A Rosy Future (for Some Media) (Borrell Research)