Borrell: Radio Up, But Trailing Most Other Media In Auto Ad Revenues
July 12, 2011 at 3:58 AM (PT)
BORRELL ASSOCIATES has released a new report, "2011 Local Automotive Advertising Outlook," which notes at $22.6 billion this year, automotive is the second-largest advertising category (behind general merchandise stores). The report sees auto ad revenue increasing on most media outlets for the year, with online showing the biggest increase
"We’re forecasting an overall increase of 7.2%, from $21.1 billion in 2010 to $22.6 billion this year," writes BORRELL. "Every medium except yellow pages is seeing an increase in auto advertising this year. The largest percentage increase goes to cinema advertising (up 98%, to $246 million), but the largest dollar increase is expected for online media, which is projected to be up 11%, from $6.6 billion to nearly $7.3 billion. Online now dominates nearly one-third of all auto advertisers’ budgets and is likely to grow as dealers migrate more toward social media and mobile marketing."
Radio is expected to see a slight bump in 2011 from last year, but flat over a decade-long span. In 2000, radio billed $1,551.87 billion. By 2010, it had slipped to $1,518.25 billion. BORRELL sees a 2.1% increase in 2011 with $1,550.43 billion in auto revenues for radio.
MEDIAPOST.COM notes, "Ongoing surveys of local advertisers indicate a continued high interest in online media. Auto dealers are proving to be the most aggressive of all advertisers when it comes to social media and mobile media, concludes the report. 36% of them claim to be familiar with mobile advertising opportunities, twice the rate of other local advertisers."