“Radical Shift in Automotive”

Borrell and Associates has passed along a client memo signaling a big change in the way the automotive industry approaches marketing and advertising. In the memo, the researcher says, “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. Big change in the wrong direction could be devastating.”

Borrell’s numbers show a projected $570 million to be spent in 2013, down over 13% from 2012. Borrell explains, “The reason for these changes is that the manufacturers decided last year to trim broadcast and print in favor of digital advertising. They learned through research that online inquiries—especially those generated via mobile devices—where leading more prospects to dealerships than other ad choices.”

The solution? The best Borrell can do is say, “Form a task force. An internal meeting of the minds is in order.”