I found a statistic this past week that speaks volumes about how companies are underutilizing the promotional opportunities on the Internet.
Jonathan Miller, former CEO of AOL reports that ad spending online lags consumer activity online by a factor of 3 to 1. Said another way, advertisers should triple their online presence to keep up with the rate of consumer’s media consumption online. This is a universal statistic, applying to many industries, and closely mirrors what we see in the car industry.
NADA reported in 2007 that the average dealership spends $590 on advertising costs to sell each vehicle (NADA Industry Analysis Division). 88% of this is split among offline media (newspapers, TV, radio, and direct mail) and only 12% on their Internet program. Dealerships continue to spend a disproportionate amount of their marketing budgets offline, in media that continue to see sharp decreases in their audience. There are many smarter, more cost effective Internet promotional opportunities available for dealerships. As a reminder, AutoXloo offers several software tools that help dealerships manage their online presence. Take a look at AutoXloo.com.