This fifth edition of the popular sign design series includes the winners of recent Signs of the Times contests: electric and commercial signs for retail shops, restaurants and bars, residential ...
Digital signage performs more efficiently than a "shotgun" advertising approach.
| Tweet |
-->
Every business has a particular affinity to a preferred form of advertising. For the automobile retail industry, it’s always been newspapers. In every U.S. city, a significant bulk of the daily papers contains car advertisements, but this trend is definitely changing.
Historically, the traditional automobile retailer, compared to other place-based, retail-type outlets, has relied on newspapers. The most recent data from the National Auto Dealers Assn. (NADA) reveals that the average dealership pays $360,225 per year for all advertising. Dealers who sell more than 750 cars per year average a whopping $749,788 per year, or $1,000 per car.
The most revealing data is represented in a NADA chart (see www.nada.com) that compares total advertising expenditures for the years 1995 to 2005. The chart shows the auto industry continues to spend most of its ad budget with the newspaper industry, but that the total amount has dropped from 53.9% over the last 10 years to 33% today. An even earlier NADA chart, dated 1991 and posted in 2001, discloses that automobile dealerships then spent 58.1% of their ad monies for newspaper advertising. These figures validate what I’ve heard on the street – the average auto dealer’s love affair with the newspaper is ending.
Did you enjoy this article? Click here to subscribe to the magazine.
