»
Auto makers could reduce their ad spending by as much as $3 billion this year, leaving auto ad spending down $15 billion from its high of $24 billion in 2004, according to Sanford Bernstein & Co.
Newspapers and local TV and radio stations are expected to be hit particularly hard, writes the Financial Times. U.S. auto makers are the single largest category of advertisers, accounting for 12 percent of U.S. advertising spending.
TV and radio groups have already been hurt by the decline in auto spending. CBS last week reported a 6 percent drop in Q2 TV advertising sales, while Entercom yesterday reported a decline of 1 percent in second quarter net revenues.
Magazine publishers have also struggled with declining auto ad revenue. Between January and April, auto makers reduced spending on magazines by 17 percent, according to Magna Global. Magna downgraded 2008 ad spend estimates to two percent growth in the U.S. - from 3.7 at the beginning of the year, according to MarketingVOX.
Auto ad budgets are expected to recover, but ad money will be increasingly routed to the internet and to event sponsorship in the future, experts believe.
In the meantime, auto makers are struggling to counteract declining sales with incentives. Chrysler is offering the highest incentives in the industry - as much as 40 percent off select Dodge Ram pickups as part of its latest program for dealers.
CBS Radio and Yahoo, two of the largest online radio providers, are combining their online radio stations, beginning early next year.
CBS Radio’s 150 stations and LaunchCast’s 150 online stations will be integrated into Yahoo’s music site, powered by CBS…
Cox Enterprises, Inc. announced today that the company is bringing together its three media units - Cox Newspapers, Cox Television and Cox Radio - under a new organization named Cox Media Group, Inc., effective January 2009. The subsidiary will be headquartered…
Target is one of the first brands to create an iPhone application. The Target “gift globe” allows iPhone users to shake their phones to launch a snow-fall effect.
When the snow clears, a gift idea from Target is revealed. Users…
ABC is set to launch a slew of new series in a midseason shuffle. Primetime: What Would You Do? returns Tuesday, Jan. 9, in the 10pm time slot. The show is a hidden camera experiment in which actors stage scenarios…
Only 28% of the audience of an average news program, website or magazine gets valuable information about products and services advertised there, making news venues less effective at conveying ad messages than all forms of media combined (see chart), according…
Effective immediately, any telemarketing call that delivers a prerecorded message must include a quick and easy way to opt-out of receiving future calls. The opt-out must work both for consumers who answer these calls in person and for those whose…
