Wrenching changes in automotive advertising are forging a new landscape for local media. Broadcast media and newspapers are losing more ground, while online and direct mail are on the rise. Our annual report examines the underpinnings of those changes. It tracks historical shifts in automotive spending across each media type and issues forecasts for up to five years.
Having digital-only sales rep on staff lifts attitudes, increases understanding of digital products and increases digital revenues for traditional media companies. But competition is stiff to hire digital reps: Pureplay companies are offering 50% more base pay than traditional media companies. That’s the conclusion of our latest survey of 220 sales executives at radio, TV, newspaper, yellow pages and pureplay companies. Hiring of digital-only reps is back on the upswing, with 62% of media companies reporting that they have at least one on staff – up from 48% in 2011.
We’ve fielded numerous questions about automotive advertising in the past few weeks and felt compelled to give clients a head’s up regarding significant changes taking place. This memo on automotive advertising is being published in advance of our regular annual report, which we expect to publish around July 1. If you have questions or would like to discuss this by phone, please call 757-221-6641 or email us at firstname.lastname@example.org. What we’re seeing is a radical shift in the way dealers, dealer associations, and manufacturers market themselves – the end result of how consumers have altered shopping habits. We believe these changes are notable not only because of the shifting dollars, but more importantly because the print and broadcast industries rely so heavily on the automotive category. The average print or broadcast outlet gets 15% to as much as 45% of its revenue from automotive. Big change in the wrong direction could be devastating.
Annual Analysis: Benchmarking Local Online Media Who's enjoying the biggest share of the $24 billion spent online by local businesses this year? This 50-page annual report includes 37 charts and graphs chronicling what's happening in local media's quest to conquer the digital frontier. It includes details not only revenues but also profitability for more than 6,000 Internet pureplay companies and traditional media digital ventures.
Wondering why so many companies are rushing to sell marketing services to SMBs? It’s because local advertisers have fallen deeply in love with promotions and “owned media.” Our latest report, “2013 Local Promotions Forecast,” details how advertisers are carving dollars from other budgets to invest in quick-reward marketing programs like discounts, coupons, contests, and loyalty programs. This year, local businesses are likely to spend a whopping 81% more on local promotions than they will on classic advertising – something that’s never happened before.
Local advertising is expected to grow 7.5% this year, but online is stealing the headlines. Our survey of SMBs at year-end 2012 offers a glimpse of what will happen this year in this comprehensive report on local advertising and marketing expenditures. Radio advertising goes down, cinema advertising goes (way) up, and newspapers finally show an uptick.