Upcoming Borrell Outlook Sees Fewer Ad Dollars Coming Radio's Way
July 18, 2016 at 4:31 AM (PT)
BORRELL ASSOCIATES CEO GORDON BORRELL posts to LINKEDIN, "We'll be publishing our annual outlook on automotive advertising this month, and as I looked at the data I couldn't resist leaking this chart.
"It's a wake-up call to anyone reliant on automotive advertising. My interpretation: Even after 20 years of plowing more and more money into Internet advertising, dealers haven't finished their scale-back of traditional media.
"To be clear, I don't think the scale-back is wholesale. The cuts are more directed to inferior media companies. Dealers are simply shutting the door on companies that keep sending reps who see digital media as a competitor, not a complement. Consider two interesting data points from the upcoming BORRELL report:
- Car dealers are reporting that they get called on by sales reps an average of 84 times per month. The average for all SMBs is 25.
- Car dealers are now rating "online ads" on par with TV spots as a leading source of leads. "Social media" is not far behind TV.
"I see this basically as a thinning of the pack. The weakest companies will look at this negatively. The smarter ones will see opportunity. The digital competitors are already "there," unfortunately, hungry to scoop up business. As one auto dealer in the survey said, 'Many digital companies I deal with now where we spend money with them feature instant access of at least one contact person available at all times-immediately via phone or e-mail. And it's the SAME PERSON on our account. This is impressive to me, as they seem to 'get it' when it comes to matching the level of response and service we expect, and more importantly, require. And this is with companies now who we only spend a few hundred dollars with a month. I get immediate answers, info, assistance, etc., no matter when or what it is. I stay loyal to those companies, of course as long as they make sense in terms of ROI first and foremost."