During the global recessionary crisis, the automobile industry had been one of the hardest-hit sectors all over the world. So it is only natural that in the post-recession period, the spotlight would be on this industry and how it performs and markets itself in a resurgent economy. Spend on advertising is generally regarded as one of the Key Performance Indicators (KPI) of an industry. Independent studies by various groups have revealed some interesting trends in ad spending by the automobile industry:
- In the US, ad spending by automobile manufacturers increased by almost 27% in the first half of 2010. These figures, released by Nielsen Co. show that auto makers, lead by giants like General Motors, spent a staggering USD 3.5 billion on advertising.
- Borrell Associates predicted that US auto manufacturers will raise their ad spend online by 14% in 2010. They even predicted that this figure will surpass those for other media forms. According to them, this increase will be steered by emails, social networking, and streaming media.
It looks like automobile manufacturers are expecting sales to soar in the coming months and are thus increasing the amount they invest in advertising. And what is more, they are also looking to tap new mediums of communication to reach out to a larger number of people. The influx of Smartphones and the burgeoning popularity of mobile applications have given them ideas!
The developments in the capabilities of the mobile phone or any other hand-held device augur well for advertisers. In fact, advertisers are already using Targeted-Audience campaign methods like Demographic, Behavioral Audience and Audience Takeover to reach out to more people. On the other hand, automobile makers use the View Map/Store Locator post-click campaign actions to attract traffic to their brick-and-mortar stores. It is thus not surprising that mobile advertising spend was predicted to rise by 80% in 2010, according to a study by DM2Pro.com and Mojiva.
Automobile makers are stepping on the gas on their advertising costs and marketers are leaning to mobile ads. These inclinations culminate into an interesting trend for the automotive industry: mobile ad spending in this sector will increase significantly in the coming months.
Lenco Mobile is a global leader in developing customized mobile solutions for wireless carriers, brands, and agencies. They are indeed looking forward to tackle the increased technological challenges that this new development will pose!
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