Magazine article Editor & Publisher

Borrell Report: More Bad News for Auto Ads

Magazine article Editor & Publisher

Borrell Report: More Bad News for Auto Ads

Article excerpt

If you sit in on enough quarterly earnings call, you learn quickly that the drop in automotive advertising revenue is (partly responsible) for mucking up results. A new report from Borrell Associates reveals the slide will continue.

"The fat times are over for automotive advertising," Borrell analysts wrote. "Manufactures and dealers are plowing more money into their own Web sites, disintermediating traditional media by letting consumers get price-and-item information directly."

In the past five years, auto advertising grew at a compound annual growth rate (CAGR) of 3.7 percent to $31 billion. Over the next five years, auto advertising is expected to slow, growing at a CAGR of 1.7%. Borrell predicts that by 2009, online auto advertising will hit $4 billion and will surpass newspapers, cable, radio, and direct mail.

Newspapers are projected to lose 24.6% of auto advertising when comparing 2011 estimates to 2006 spend. In 2006, Borrell estimated that auto advertising was at $4. …

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