AdAge Study Reveals Interesting Automotive Stats
A recent AdAge study took a look at the nation’s companies that spent the most during calendar year 2016. Not surprisingly, the automobile industry had an immense presence in the Top 100; in fact, by this blogger’s count, a full 10 spots were occupied by automobile manufacturers.
Who spent the most, you ask? That would be General Motors (#3 overall in the list), spending $3,768 billion dollars last year alone. Also cracking the Top 10 was the Ford Motor Company (#9), who shelled out $2,341 billion. Just behind them were Fiat Chrysler at #12 ($2.165 billion) and Toyota (#15) at $1.998 billion.
More on the AdAge Study
Breaking down automotive advertising market share specifically by brand, Ford finished atop the list at 14.2%, followed by Toyota (12%), Chevrolet (11.9%), Honda (8.4%) and Nissan (8.1). All told, the automotive industry spent more than any other category of advertiser, with $15.2 billion in 2016.
According to the AdAge study, all major media and marketing services spent $421.5 billion. TV advertising was first, at $68.1 billion, followed by Internet at $60.4 billion.
These are all interesting statistics … but we also noticed something else that captured our attention. There were a number of Internet-based companies that were very high up on the list.
Why do you suppose these folks – who are advertising giants in their own right – would spend so much of their own ad budgets on the “traditional media” of radio and television? The answer is simple: traditional media drives people to the online marketplaces where goods are bought and sold … the online insurance companies … the online communications companies … and so forth. Together, traditional and online advertising work far better than they do all by themselves. Need proof? A Radio Advertising Bureau (RAB) study showed that radio ads and Internet together resulted in a more than five times greater recall ability than the Internet advertising alone. Something to think about as you advertise for your own dealership(s) going forward.
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