Auto: Strong sales are driving up ad $
On pace for best year since 2007 with 14 million vehicles sold
October 24, 2012
Olympic and political advertising certainly deserve much of the credit for the advertising gains being seen in 2012.
But the biggest sign of a sustainable recovery, not dependent on the two-year election and Games cycle, is the strength of the auto category.
After a solid 2010 and disappointing 2011, 2012 is on pace to be the best year for auto sales since 2007, and perhaps the best advertising year as well.
Forecasters are predicting that 14 million cars will be sold this year, up 29 percent over 2009, when the auto industry was battered by the recession, bankruptcy and bailouts.
There’s a huge market for auto sales, which is leading to strong advertising in the category by manufacturers and dealers fighting for market share.
Add to that the big gains from the Japanese manufacturers, who pulled back on advertising last year following the earthquake and tsunami that led to severe inventory shortages, and auto advertising should remain strong for the remainder of the year and beyond.
“The automotive category is coming back very strong on both the foreign and domestic front, with tier I, tier II and now tier III local dealer advertisers spending heavily [on spot television],” notes a recent forecast from the British agency ZenithOptimedia.
“There is a strong appetite among consumers for new vehicles, with many holding off coming out of the recession, and automakers are offering deals and incentives to entice these consumers.”
During second quarter spot TV spending by automotive was up 25.6 percent over the same time in 2011, according to the TVB, to $648.8 million.
That was the biggest gain for any non-political category among the top 25, with the Honda, General Motors, Toyota, Hyundai and Ford dealer associations all up at least 9 percent.
“Local dealer advertising was the No. 1 [spot TV] spender in 2007 for many markets; this category coming back is making a strong impact on local inventory in markets,” says ZenithOptimedia’s report.
The appetite for new cars is being fueled by the recession. In 2008 and 2009, many people held off on buying new cars when their vehicles were six or seven years old.
That’s led to a larger than usual number of 9- or 10-year-old cars on the roads.
Now that the credit crunch has eased a bit, and it’s easier for people to get approved for long-term deals, dealerships are seeing much more traffic and thus laying out incentives to try to woo consumers, incentives that they’re advertising heavily on television and online.
Judge: Clippers sale will go through after all
Stephen A. Smith apologizes for comments
Fox Sports and Sporting News teaming up
Study: TV stations hire more minorities
Cable overnights: ‘Manhattan’ bows to 900,000
After slow start, ‘Extant’ gets a new slot
What clients need to know about out of home
‘Big Brother’ paces CBS to another Sunday win
This week’s top movies, songs and books
Readers: Rupert Murdoch’s still got it
NBC’s ‘Mysteries of Laura’: Iffy outlook
Buzzfeed dumps writer in plagiarism dustup
Self magazine slashes eight employees
- Tom Buontempo becomes president at Attention
- Fareed Zakaria becomes a contributing editor at The Atlantic
- Jason Chupick becomes PR director at Hearst Magazines Digital
- Terry Duffy rises to group publisher at Palm Beach Media Group
- Lars Anderson becomes special contributor at Alabama Media Group
- Anne Kensington-Lott becomes VP of Hispanic at McGavren Guild Media
- Mark Gall becomes CRO at DEFY Media
- Stephanie Mitchko-Beale becomes CTO at Cross MediaWorks
- Barry McMullin becomes SVP of sales at WWE
- Mary Louise Parker joins NBC's 'The Blacklist'
This week’s top movies, songs and books
This week’s daypart ratings
This week’s cable ratings
This week’s broadcast ratings
This month’s new media traffic data
This week’s younger viewer ratings
Mobile media planner opening in San Francisco
Senior media planner/buyer wanted in Cleveland
Digital media planner position in Austin
Media planning supervisor job in New York
Digital media planner opening in Chicago