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Automakers Snapping Up Online Avails

  • AdAge, Friday, December 30, 2005 12:30 PM
More than most marketers, automakers seem to have discovered the power of the Internet. So far, more than 80 percent of all available 2006 ad space on independent, third-party auto research sites has been bought, compared to less than 50 percent of the same inventory a year ago. Media buyers and auto-research publishers say the trend reflects the auto industry's growing appetite for online advertising and a decrease in spending in more traditional mediums, since many 2006 automotive budgets are expected to be flat. Because of demand, cost-per-thousand-consumer prices for 2006 ads on the third-party auto sites have jumped an average of between 20 percent and 30 percent over 2005 rates. Some of the larger ad units offering rich media or video have increased prices by more than 50 percent, said Mitch Lowe, CEO of Jumpstart Automotive Media, San Francisco, which represents a slew of the sites involved, such as J.D. Power and Associates' JDPA.com; consumerguide.com; eBay Motors and others. However, some online auto publishers, such as Edmunds.com and Kelley Blue Book's kbb.com, which get some of the heaviest traffic among car sites, put the price raise for 2006 placements at 5 percent to 10 percent, and closer to 20 percent for the most prime locations.

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