With auto advertising booming this year, automakers and car dealers will shift more ad dollars from traditional newspaper, TV and radio outlets to online and nontraditional media, a research firm says.
The industry is on track to spend $17.29 billion on auto advertising this year, up from $15.70 billion last year and $14.10 billion in 2011, according to a client memo distributed by Borrell Associates Inc. in Williamsburg, Va.
But Kip Cassino, executive vice president for research at Borrell, said the additional dollars will go to advertising such as Web site banner ads and car commercials shown in theaters during movie previews.
Traditional media will decline in market share and dollar outlays, according to Borrell.
The firm forecasts that automotive newspaper advertising will total $3.10 billion this year, down from $3.39 billion last year. TV advertising will total $1.60 billion this year, down from $1.86 billion last year. Radio will receive $570 million in 2013, compared with $659 million in 2012, according to Borrell.
Advertising strategies are rapidly shifting as consumers rely more on online research and mobile phone apps. Borrell expects online vehicle advertising to represent half of all automotive ad spending this year, compared with less than a third two years ago. That share will be worth $8.65 billion this year, up from $6.87 billion in 2012.
Borrell prepared the forecast data in advance of its annual market report in response to a large number of queries recently from automaker and ad agency clients trying to stay abreast of the changing strategies, Cassino says.
Borrell predicts growth this year in cable TV advertising for autos, as well in telemarketing and direct mail. According to the forecast, direct mail auto advertising will jump 39 percent this year to eclipse radio's market share.
The shift from radio this year -- despite an uptick in radio spending last year -- will leave radio with a 3.3 percent share of the industry's advertising, down from 4.6 percent two years ago.