JP Marketing Sees Auto Dealers Making Major Shifts of Ad Spends into Online Advertising

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As 2009 remains to be a difficult landscape for Franchised and Used Car Dealerships alike, the most successful dealers have partnered up with companies like JP Marketing at AutoDealerWebHost.com, and are leveraging the myriad of shoppers searching for vehicles online. This shift represents a massive change in advertising spends throughout the entire automotive industry. With newspapers struggling and largely going online, tv ads are becoming more crowded and less effective, Internet Marketing and Advertising is on the rise in the automotive world.

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Online advertising will grow 4.3 percent in the U.S. this year as total ads spend plunges 7 percent, but Internet advertising could shoot up 20 percent next year, without the internet, U.S. advertising would be down 10 percent.

Auto Dealers in Florida are finding it more and more difficult to reach consumers through traditional forms of advertising. This is largely in part due to the fact that consumers are by and large choosing the internet for their research and shopping. At JP Marketing, we can see that consumers are largely cementing this mentality of trust and infinitely available information on the internet. As we largely maintain this pattern of buying behavior, it becomes ever more comfortable and commonplace. These days the more traditional forms of advertising are a fast dying breed, and many are morphing into online ventures.

"Online advertising will grow 4.3 percent in the U.S. this year as total ads spend plunges 7 percent, but Internet advertising could shoot up 20 percent next year, without the internet, U.S. advertising would be down 10 percent." Mark Mahaney, director, Internet Sector for Citi Group Investment Research.

Today's customers demand full disclosure before responding to any form of vehicle inventory advertising. Some Internet Specialist Dealerships are offering a minimum of 52 pictures of every vehicle available in their inventory. They are taking pictures of the tread of each tire; every knob and switch, any scratch or blemish is disclosed immediately on the site. Some go as far as to refuse people at the lot if they have not been to the website and have a stock number of the vehicle they have in mind. These dealerships are doing lots of business because they have discovered what today's auto consumer has come to expect in internet shopping, full disclosure.

Believe it or not there are still car dealerships that operate like it is the mid 1980's and are still in business. These dealerships only stay afloat due to their parts and service departments, which are currently down with no clear end in sight. They will be forced to become profitable on the sales end or go under. Dealerships that attempt the old time high gross, low volume philosophy and refuse to price their vehicles fairly on the internet will not survive the next few years.

Internet savvy dealerships that connect with high quality internet search marketing firms now will have the leading edge in the future as it will become more and more difficult to topple aged search rankings. Wise dealerships, like Santa Fe Ford in Gainesville FL, that stock a wide variety of used cars, price them competitively and use an outside marketing firm to promote their inventory through a dedicated web presence, are doing just fine in this seemingly unfriendly market. Only the old school Joey jelly donut places are closing up shop. Independent used car dealers and franchised dealerships with strong pre-owned inventory that are effectively marketing online are making strong profits.

With bank repos rising, and credit frozen, there is an excellent opportunity right now for the dealerships that are actively buying cars at auction. Prices are depressed to unbelievable lows and dealerships with spending capital are able to buy fresh inventory very cheaply.

There is a strong opportunity for dealers generate lots of revenue this year despite the recession. Many old-timers will close up shop, but there is a strong future for the full disclosure style of internet auto sales that demand effective internet marketing to succeed.

Christian Jorn is the CEO and President of an Internet Marketing Firm representing Auto Dealerships. Contact Jorn and Price Marketing at http://AutoDealerWebHost.com or at 1-866-WEB-AUTO.

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Christian Jorn
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