Automotive Advertising 'On a Roll' with Online Video, According to New Report by Classified Intelligence

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Panels of top automotive advertisers and major auto dealers across North America met with Classified Intelligence and discussed trends and expectations of online video and search engine results as the industry begins to rely on new technology to improve sales.

This is the year video becomes an integral component of online auto advertising, from high-quality interactive video-on-demand to amateur snippets from used-car sellers' mobile phones, a new report from Classified Intelligence shows.

The 67-page report, "Auto Advertising 2007: Are You Ready to Roll Video?," reviews the global growth of video use in automotive ads online. A panel of auto advertising experts, including executives from Cars.com, AutoTrader.com, Gabriels Technology Solutions, Morris Digital Works, Adicio and others, discusses the need for customer-focused video products in 2007.

"Video raises the bar for everyone, and all classified advertising publishers will have to deal with it to stay in the game," said Jim Townsend, editorial director of Classified Intelligence. "Consumers are going to demand high-quality video from auto manufacturers, dealers and ad-site operators. But sites will also have to offer consumers the ability to post video about cars, or about their own car for sale - just as YouTube does now."

Mitch Golub of Cars.com, for example, noted that, "We're seeing an increase in consumer-generated content that allows car shoppers to learn from their peers about vehicles they're considering. … We also expect to see video increasingly play a more prominent role for new- and used-vehicle listings."

The report reviews spending trends in auto advertising and notes that U.S. auto dealerships spent almost $8 billion on advertising in 2005 - a number that is believed to have dropped significantly last year. Dealerships surveyed by Classified Intelligence expect to spend 23 percent of their budgets on online media in 2007, including both local online classified ads and auto sites offering lead- generation services. Dealers in the survey said they intended to spend about 30 percent of their ad budgets in print - slightly less than they did the previous year.

"We're approaching a major change in auto advertising," Townsend said.

The report, sponsored by application service provider Adicio, is available for sale through the company's Web site, ClassifiedIntelligence.com, and was distributed to Classified Intelligence clients as part of the company's continuous advisory service.

Free copies are available for editorial purposes only. Contact Phyllis Turner or Theresa Welty at 407-788-2780. To interview Jim Townsend, call 713-550-0699. CI founding principal Peter M. Zollman is also available, through the Orlando office number (407-788-2780).

About Classified Intelligence

Classified Intelligence LLC is a consulting group that works with leading media companies, dot-coms, yellow-page publishers and broadcasters to develop successful classified advertising services. It publishes a continuous advisory service, "Classified Intelligence Report," that focuses on trends, products and companies in the industry. It also provides proprietary and published research about classifieds; offers strategic and tactical workshops and planning services; works with newspapers, broadcasters and YP publishers to develop strong local, regional and niche-market classified advertising services, and delivers sales training. Founded in 1998, it is affiliated with the Advanced Interactive Media Group LLC. For more information, visit ClassifiedIntelligence.com or call (407) 788-2780.

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Phyllis Turner
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